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Fitch Solutions: Oil & Gas CDS Outperform Amid Middle East Turmoil

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=602505

The credit default swaps (CDS) market appears to be finding solace in the oil and gas industry in the wake of political turmoil in Egypt and Tunisia, according to Fitch Solutions in its latest Risk and Performance Monitor.

Compared to levels observed prior to the Gulf of Mexico oil spill, CDS on European oil and gas companies have just slightly underperformed the broader market in the region, while the North American oil & gas sector has actually outperformed the overall North American credit market.

'CDS on oil & gas companies have been rallying consistently since late last year and are pricing, on average, 5% tight of recent historical trading levels ,' said Author and Managing Director Jonathan Di Giambattista. 'Based on how the credit market is pricing default risk, it appears confidence in the oil & gas industry has been restored.'

The 'Fitch Risk and Performance Monitor', which is published on a weekly basis, is available by clicking on the above link.

Additional insightful market data and analysis is available at 'http://twitter.com/fitchsolutions'

Fitch Solutions, a division of the Fitch Group, focuses on the development of fixed-income products and services, bringing to market a wide range of data, analytical tools and related services. The division is also the distribution channel for Fitch Ratings content.

The Fitch Group also includes Fitch Ratings and Algorithmics, and is a majority-owned subsidiary of Fimalac, S.A. For additional information, please visit 'www.fitchsolutions.com'; 'www.fitchratings.com'; 'www.algorithmics.com'; and 'www.fimalac.com'

Fitch Solutions
Jonathan Di Giambattista, +1-212-908-0273
Managing Director
Fitch Inc., 1 State Street Plaza, New York, NY 10004
or
Diana Allmendinger, +1-212-908-0848
Director
or
Media Relations:
Peter Fitzpatrick, +44 20 3530 1103, London
Email: peter.fitzpatrick@fitchratings.com
Sandro Scenga, +1-212-908-0278, New York
Email: sandro.scenga@fitchratings.com