Credit Markets Update: Repsol spreads widen due to Argentina concerns
The cost of credit protection on Repsol, the Spanish-Argentine oil and energy group, widened 30 basis points today after Moody’s placed it under review for possible downgrade yesterday. Moody’s concerns reflected the ongoing deterioration in the economic situation in Argentina and its government’s inability to come to an agreement with the IMF.
The cost of protection on other key Spanish names also widened following concerns the Argentine government has failed to get a grip on its economic problems. Gas Natural, which has a large presence in Latin America, saw bids rise from 35bp yesterday to 45bp today. Endesa was 5bp wider during the week, trading today at 40bp mid, and was well bid by one market participant
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