Textron credit swaps jump
12:31 PM Mon, Feb 02, 2009 | Permalink
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The cost to protect against a default by Providence-based Textron Inc. soared to a record as Standard & Poor's said it may cut the aircraft maker's ratings, according to Bloomberg News. Credit-default swaps protecting Textron bonds for five years jumped six percentage points to 24 percent of face value upfront, according to CMA DataVision in London. That's in addition to 5 percent a year, meaning it would cost $2.4 million initially and $500,000 annually to protect $10 million of the company's bonds. S&P said late Jan. 30 that it may lower its BBB+ rating on Textron and its BBB rating on the company's finance unit. Contracts linked to Textron Financial Corp. rose five percentage points to 21 percent upfront, CMA data show. 
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