Fujitsu spreads widen 30bp due to multiple woes

Credit default swap spreads on Japanese computer maker Fujitsu’s five-year debt protection widened 30 basis points this week, following media speculation that the company might become a “rehabilitation candidate” for the government’s Industrial Revitalisation Corporation – a body that helps revive debt-laden corporations.

Its spreads were also hit by uncertainty over the state of its production plant in Northern Japan, which was closed for inspection following an earthquake on Monday. But another Tokyo-based credit derivatives trader said Fujitsu’s spreads were also affected by rumours the company would issue more convertible bonds. Fujitsu credit default swaps traded at 155bp-mid today.

The cost of protection on the technology company’s debt was already rising last week, when rating agency Standard & Poor’s said