The spread on credit default swaps (CDS) of Fairfax Media Ltd widened the most among 76 actively traded CDS in the country, data from Thomson Reuters Credit Views showed.
A widening CDS spread indicates a drop in credit worthiness of a company and growing investor scepticism over its ability to service debt.
Fairfax Media’s 5-year CDS spread stood at 692.435 basis points on Wednesday, having deteriorated by 71.7 percent in a month.
The deterioration comes as the Australian publisher slashed the value of its newspaper tiles by almost $3 billion last month, as it posted a steep fall in profit and said it saw no early turnaround in the worst advertising conditions in more than 30 years.
The stock is down 11.4 percent over the past month, as of Wednesday’s close, while the broader index gained 1.87 percent for the same period. (Reporting By Patturaja Murugaboopathy; Editing by Sunil Nair)