Jump In Accor Spreads Out Of Line With Expectations

Five-year credit-default swap spreads on hotel group Accor widened 30 basis points last week even though the group's annual revenue reports were in line with market expectations.

  • 01 Feb 2004
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Five-year credit-default swap spreads on hotel group Accor widened 30 basis points last week even though the group's annual revenue reports were in line with market expectations. The price of protection jumped to 135 basis points on Tuesday from 104bps the previous Friday.

The jump in spreads followed a presentation of Accor's 2003 consolidated sales figures, which showed revenues down 4.3%. But, traders said this was in line with market expectations and were baffled as to why the market reacted so aggressively.

A credit analyst at a German bank said there was a lot of speculative trading and volatility on the cash side and this pushed up the price of protection. He added there were rumors the ratings agencies might downgrade Accor. Spreads tightened back in to trade at 110bps on Wednesday and traders were expecting spreads to continue tightening.

Standard & Poor's rates Accor BBB and placed it on CreditWatch negative in June. In September, the agency warned that the company could be downgraded one notch to BBB minus if the 2003 results were poor. Claude Chaubet, a spokeswoman at Standard & Poor's in London, said it is unlikely to change the rating until the annual results are published in March. Moody's Investors Service gives Accor a short-term rating of Stable Non-Prime, which is the lowest possible rating, and there is no long-term rating for the corporate.

  • 01 Feb 2004

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 13 Mar 2017
1 JPMorgan 94,925.33 384 8.39%
2 Citi 87,531.58 331 7.74%
3 Bank of America Merrill Lynch 84,341.49 288 7.46%
4 Barclays 75,288.19 241 6.66%
5 Goldman Sachs 68,504.71 208 6.06%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 14 Mar 2017
1 Bank of America Merrill Lynch 10,650.87 23 11.13%
2 Deutsche Bank 8,169.49 17 8.53%
3 HSBC 6,243.46 23 6.52%
4 Citi 4,355.35 13 4.55%
5 SG Corporate & Investment Banking 4,273.37 17 4.46%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Mar 2017
1 JPMorgan 5,440.56 17 10.74%
2 Deutsche Bank 4,468.97 23 8.82%
3 UBS 3,742.72 17 7.39%
4 Citi 3,393.89 23 6.70%
5 Goldman Sachs 3,360.93 18 6.63%