Bermuda-based Primus Guaranty has revealed the company has limited credit default swap (CDS) exposure to Thomson SA.

Following last month's announcement by the International Swaps and Derivatives Association Inc. that its EMEA credit derivatives determinations committee determined that a restructuring credit event occurred in respect of Thomson SA, Primus said its CDS portfolio of Primus Financial Products LLC had no single-name CDS notional exposure that references Thomson.

But the insurer said that Primus Financial did have CDS exposure to Thomson in some of its bespoke tranche transactions, which are not subject to first loss due to existing sub-ordination levels. The company said it does not expect Primus Financial will have to make cash settlement payments on its bespoke tranche transactions and that its economic results for the third quarter of 2009 will not be affected due to this restructuring credit event.