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Debt-Bloated Firms That Coronavirus Threatens to Drag Down (1)

March 3, 2020, 3:46 AM

From Richard Branson’s Australian airline to U.S.-based cinema chains and casino operators, the companies most vulnerable to the coronavirus outbreak are facing mounting pressure in global credit markets.

An escalating outbreak that drives off customers and revenue could lead to ratings downgrades, hinder refinancingefforts, and in some cases trigger defaults. And it’s more than just travel companies: Debt-laden commodities producers, shipping firms and luxury automakers have endured waves of selling by bondholders as they ratchet down expectations for global growth.

Investors who’ve spent years pouring money into nearly everything the credit markets had to offer are balking now...

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