CDS spreads on Constellation Brands rallied 24% over the past three months, compared to 9% tightening for the broader sector. 'Credit markets are likely responding to Constellation's announcement that it will be selling some of its businesses and using proceeds to pay down its outstanding debt,' said Author and managing Director Jonathan Di Giambattista. CDS liquidity, however, ticked up one rank to trade in the ninth regional percentile. The markets are still uncertain to a large extent over Constellation's future performance,' said Di Giambattista.

Elsewhere, while KB Home has staged a rally of its own, with CDS spreads tightening 14% over the past three months and credit risk continuing to price in line with 'B' levels. However, ongoing housing market weakness is resulting in still-high CDS liquidity, with KB Home moving up to the 13th regional percentile.