MTCH – Base Case iCDS 184bps, Negative Case iCDS 259bps, 2027 5.000% Bond YTW of 6.536%, iYTW of 6.156%, Ba2 Rating from Moody’s, IG3- (equivalent to A3) Rating from Valens, Low Refinancing Need
August 18, 2023
- Cash bond and CDS markets are now accurately stating MTCH’s credit risk, with a YTW of 6.536% relative to an Intrinsic YTW of 6.156%, and a CDS of 197bps relative to an Intrinsic CDS of 184bps. As such, the tightening of this spread makes this holding less compelling from a credit investor’s point of view. Meanwhile, Moody’s is materially overstating MTCH’s fundamental credit risk with its speculative Ba2 credit rating, five notches below Valens’ IG3- (A3) credit rating.
