(The following statement was released by the rating agency) NEW YORK, September 04 (Fitch) Five-year credit default swaps (CDS) on the European banking sector have tightened significantly over the past month following a bout of widening earlier this summer, according to Fitch Solutions in its latest case study. “On average, CDS on European banks have come in 12% over the past month, outpacing the broader region, for which spreads moved 6% tighter over the same time period,” said Diana Allmendinger, Director, Fitch Solutions Banks domiciled in Spain, Portugal and Italy were at the forefront of the tightening, firming 26%, 25% and 22%, respectively over the past month. “Based on our CDS Indices, the market is no longer singling out the European financials industry as it had in recent years, with the spread differential between the financials and corporates indices less than 10 basis points, compared to 60 basis points a year ago,” added Allmendinger. Fitch Solutions case studies build on data from its CDS Pricing Service and proprietary quantitative models, including CDS Implied Ratings. These credit risk indicators are designed to provide real-time, market-based views of creditworthiness. As such, they can and often do reflect more short term market views on factors such as currencies, seasonal market effects and short-term technical influences. This is in contrast to Fitch Ratings’ Issuer Default Ratings (IDRs), which are based on forward-looking fundamental credit analysis over an extended period of time. Additional information about Fitch Solutions’ products is available at www.fitchsolutions.com Contact: Diana Allmendinger Director +1 212-908-0848 Fitch Solutions 33 Whitehall Street New York, NY 10004 Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: firstname.lastname@example.org; Sandro Scenga, New York, Tel: +1 212-908-0278, Email: email@example.com. 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. Fitch Ratings and Fitch Solutions are part of the Fitch Group, a jointly-owned subsidiary of Fimalac, S.A. and Hearst Corporation. For additional information, please visit ‘www.fitchsolutions.com’; ‘www.fitchratings.com’; ‘www.fimalac.com’ and ‘www.hearst.com’.