CNC – Base Case CDS 126bps, Base Case iCDS 69bps, Negative Case iCDS 71bps, 2029 4.625% Bond YTW of 5.617%, iYTW of 4.827%, Ba1 Rating from Moody’s, IG4+ (equivalent to Baa1) Rating from Valens, Low Refinancing Need
March 13, 2024
- Cash bond markets are overstating CNC’s credit risk with a YTW of 5.617% relative to an Intrinsic YTW of 4.827%, while CDS markets are slightly overstating credit risk with a CDS of 126bps relative to an Intrinsic CDS of 69bps. Furthermore, Moody’s is overstating CNC’s fundamental credit risk with its Ba1 credit rating three notches below Valens’ IG4+ (Baa1) credit rating
