The PG&E bankruptcy has significant credit ramifications across sectors

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Learn about the key factors shaping the credit conditions for major sectors

View the latest insight on the six themes shaping credit in 2019

07 Feb 2019|Moody's Investors Service

Many of the regulatory and legislative initiatives to reduce drug prices would affect the entire US pharmaceutical industry. However, firms with the highest percentage of their revenue within the US market are the most exposed.

04 Feb 2019|Moody's Investors Service

The budget aims to boost growth through spending increases to support small farmers and through a middle-class tax cut, which will add to the fiscal deficit, a credit negative for the sovereign. The budget is credit positive for real estate, infrastructure, ABS and RMBS, but negative for state-owned oil and gas companies.

31 Jan 2019|Moody's Investors Service

PG&E Corporation’s filing for Chapter 11 bankruptcy protection is credit negative for property and casualty (P&C) insurers and reinsurers, some of which filed lawsuits related to 2017-18 California wildfires to recoup losses from PG&E. P&C insurer claims – which absent a bankruptcy would be paid earlier than other debt obligations – will likely rank pari passu with PG&E’s other unsecured debts, including senior notes. In addition, the wildfires and subsequent bankruptcy filing are likely to lead to liability and D&O claims against PG&E's insurance policies.

15 Feb 2019|Moody's Investors Service

Spain’s Prime Minister has announced a snap election for April after his government lost a crucial vote on its 2019 budget. The election would be credit positive if it resulted in a stable coalition capable of implementing structural macroeconomic and fiscal reforms. Even if the election brought about a period of political uncertainty, the economic impact would be limited.

05 Feb 2019|Moody's Investors Service

Automakers face material credit risk from the shift away from carbon emissions, and issuers with a greater proportion of smaller, more fuel-efficient vehicles will be better positioned to weather the transition. As alternative fuel vehicles become more widely adopted, automakers with financial strength and strong R&D initiatives will be better positioned in the long term.

31 Jan 2019|Moody's Investors Service

Both the global investment banks and the EU and UK authorities have taken protective measures to mitigate potential disruption, with manageable effects on costs and revenue. The negative implications of a no-deal Brexit would be greater for the UK-based banks. However, we foresee no significant implications for the UK banks’ creditworthiness given their currently strong capital, asset quality and liquidity.

Moody's Credit Outlook

Leveraged buyout of U.S. Renal Care is credit negative

Clearway Energy cuts dividends, a credit positive

JPM Coin is another example of credit-positive disruptive innovation

Source: Moody's Investors Service
Weekly Market Outlook

Default Outlook Again Defies Unmatched Ratio of Corporate Debt to GDP

The week ahead – US, Europe, Asia-Pacific 

U.S. Change Activity Improves

Source: Moody's Analytics
RATINGS NEWS
Source: Moody's Investors Service