The coronavirus compounds the challenges already confronting the global auto industry and we estimate that global light vehicle sales will fall by at least 20% this year, and by more in North America, Europe, the Middle East and Africa. Over the past three months we downgraded 40% of the auto manufacturers we rate, involving about $130 billion of debt.

While financial conditions are gradually stabilizing for most major emerging markets, the coronavirus pandemic’s shock to growth, earnings and debt burdens will increase credit vulnerabilities in the second half of 2020.

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All 33 of the largest US banking groups exceeded minimum capital and leverage ratios under the severely adverse scenario in the 2020 Dodd-Frank Act Stress Test. But the Fed is requiring banks to resubmit capital plans that reflect uncertainty stemming from the coronavirus pandemic. That leaves the ultimate results inconclusive, but may lead to credit-positive capital actions later this year.