Rising Debt Burdens
Weak earnings and solvency concerns will weigh on hard-hit companies and governments; higher debt levels and more relaxed underwriting will erode the positive effects of historically low interest rates on debt-servicing capacity.
  • 概要
  • レポート

  • SECTOR IN-DEPTH
    07 Jun 2021|Moody's Investors Service
    Global debt rose by $32 trillion in 2020 and will continue to climb this year. The COVID-19 pandemic and its aftermath will challenge debt-servicing capacity in emerging markets. Advanced economies have more fiscal space, but will encounter debt sustainability challenges related to productivity and demographics.

    PODCAST
    20 Apr 2021|Moody's Investors Service
    Laura Perez-Martinez of the Credit Strategy & Research team and research writer Richard Barley discuss the growing number of distressed companies throughout Europe and what this trend means for the region’s economy, the effects on the wider corporate landscape and for other sectors.​ Read Report
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    SECTOR COMMENT
    16 Apr 2021|Moody's Investors Service
    Federal support programs and an accelerating vaccine roll-out are bolstering our US economic outlook and supporting the country’s credit conditions. But the potential for rising inflation and, from there, higher interest rates, risks disrupting parts of the credit market.

    SECTOR IN-DEPTH
    07 Apr 2021|Moody's Investors Service
    After a merger with a publicly traded special purpose acquisition company, corporate issuers generally emerge with stronger credit quality supported by lower debt and improved liquidity.

    SECTOR COMMENT
    11 Mar 2021|Moody's Investors Service
    It is increasingly clear that official-sector lenders are intent on upholding the principle of comparable treatment of official and private creditors under Common Framework debt relief.

    SECTOR IN-DEPTH
    08 Mar 2021|Moody's Investors Service
    Strong issuance in recent years reflects investor appetite for these bonds, and most have been investment grade and local currency, which reduces refinancing risk.

    SECTOR IN-DEPTH
    23 Feb 2021|Moody's Investors Service
    Years of adding debt in a low-interest-rate environment has left many large US utility holding companies with little financial cushion to withstand external shocks. Eleven of the 25 largest investment-grade utility holding companies have three-year average ratios of funds from operations to debt that are below the threshold we have indicated for a possible downgrade.

    DATA REPORT
    08 Feb 2021|Moody's Investors Service
    Three rated companies globally defaulted in January, significantly lower than the 15 defaults recorded in December, and the trailing 12-month global speculative-grade default rate edged down to 6.7% from 6.8%. Our Credit Transition Model now forecasts that the default rate will fall to 4.2% by the end of the year on expectations of continued economic recovery.

    OUTLOOK
    28 Jan 2021|Moody's Investors Service
    The global roster of corporate industry sector outlooks turned mildly positive as 2020 ended. Uncertainty still runs high despite expectations for 2021 to be a better year than 2020, although not 2019.

    SECTOR IN-DEPTH
    28 Jan 2021|Moody's Investors Service
    Oil and gas, retail, and business services had the most defaults in 2020. We expect the trailing 12-month global corporate speculative-grade default rate to peak at 7.3% in March, then decline to 4.7% by year-end. If these forecasts crystalize, the pandemic-induced default cycle will be relatively mild compared with prior recessionary default cycles, when peaks ranged from 9.7% to 13.3%.

    SECTOR IN-DEPTH
    25 Jan 2021|Moody's Investors Service
    The fundamental credit quality of low-rated companies will remain strained, particularly in sectors that the pandemic has hurt the most. The reliance on additional liquidity likely will persist this year for those companies confronting looming debt maturities as they try to stave off default.