TDG – Base Case iCDS 130bps, Negative Case iCDS 153bps, 2028 6.750% Bond YTW of 5.887%, iYTW of 5.596%, Ba3 Rating from Moody’s, IG4 (equivalent to Baa2) Rating from Valens, High Refinancing Need
July 29, 2024
- Credit markets are accurately stating credit risk, with a cash bond YTW of 5.887% relative to an Intrinsic YTW of 5.596% and an Intrinsic CDS of 130bps. Furthermore, Moody’s is overstating TDG’s fundamental credit risk with its speculative Ba3 credit rating four notches below Valens’ IG4 (Baa2) credit rating.
