Coronavirus Effects
The economic and trade disruption caused by the coronavirus outbreak has spread from the APAC region to the rest of the world. The impact on economies, sectors and issuer credit profiles will depend on the severity and duration of the crisis.
  • SUMMARY
  • REPORTS

  • VIDEO
    VIDEO
    26 Mar 2020|Moody's Investors Service
    Sean Marion of the Financial Institutions team discusses the severe impact of the coronavirus (COVID-19) on European banking systems, leading to outlook changes to negative for Spain, France, Italy, Belgium, The Netherlands and Denmark. Click here for more insights and rating activity on European banks.

    OUTLOOK
    27 Mar 2020|Moody's Investors Service
    Our outlook for North American business conditions has changed to negative from stable as the coronavirus continues to halt normal business activity worldwide, with no clear turning point.
    SECTOR IN-DEPTH
    27 Mar 2020|Moody's Investors Service
    We forecast that the trailing 12-month spec-grade default rate will rise to 6.8% in one year if the downturn is very sharp but short, and to 20.8% in a severe, longer-lasting recession.
    SERIES
    19 Mar 2020|Moody's Investors Service
    The coronavirus, the deteriorating global economic outlook, lower oil prices and asset price volatility are creating a severe and extensive credit shock across many sectors, regions and markets. We expect credit conditions globally to further weaken and defaults to rise in the coming months.
    Macroeconomic commentaries and scenarios
    OUTLOOK
    25 Mar 2020|Moody's Investors Service
    We project a contraction in global economic growth in 2020 as the rising costs of the coronavirus outbreak and the policy responses to combat the downturn are becoming clearer. But there are significant unknowns, such as how long the virus will take to be fully contained and, by extension, how long economic activity will remain disrupted.

    MARKET COMMENT
    24 Mar 2020|Moody's Analytics
    We provide some clarity on our process for updating forecasts and best practices for incorporating forecast changes in expected credit losses estimation procedures for both CECL
    and IFRS 9 accounting.
    MARKET COMMENT
    16 Mar 2020|Moody's Analytics
    The more widespread and virulent the virus, the greater the odds of a global downturn and the weaker the subsequent recovery.
    Coronavirus impact on sectorsView more
    OUTLOOK
    27 Mar 2020|Moody's Investors Service
    As the fallout from the coronavirus outbreak worsens, we estimate global auto unit sales will plunge 14% this year. A sales rebound is likely in 2021, helped by an easier year-over-year comparison, but the strength of the recovery will depend on how soon the outbreak peaks and how quickly consumer sentiment rebounds.

    OUTLOOK
    20 Mar 2020|Moody's Investors Service
    The twin shocks will further lower global economic growth and expose sovereigns' vulnerabilities. But we currently assume the crisis will be short-lived and that growth will resume in H2.

    VIDEO
    25 Mar 2020|Moody's Analytics
    Victor Calanog of Moody’s Analytics examines two economic scenarios - severe pandemic and worst-case – and translates its effect on US Multifamily and Commercial Real Estate.
    VIDEO

    SECTOR COMMENT
    29 Mar 2020|Moody's Investors Service
    The recently passed CARES act contains $10 billion of federal funding for US airports, which will help to mitigate the loss of non-airline revenue during the coronavirus outbreak.
    SECTOR COMMENT
    27 Mar 2020|Moody's Investors Service
    The Fed’s new Secondary Market Corporate Credit Facility will improve liquidity in the corporate bond markets and mitigate some of the downward pressure on insurers' corporate bond holdings.
    Coronavirus impact on issuersView more
    ITALIAN BANKS
    RATING ACTION
    26 Mar 2020|Moody's Investors Service
    Virus-related shock drives negative outlooks and reviews for downgrade on 15 Italian banks.
    SECTOR IN-DEPTH
    26 Mar 2020|Moody's Investors Service
     We answer frequently asked questions regarding the coronavirus outbreak’s likely impact on the Italian banking sector.

    ISSUER COMMENT
    23 Mar 2020|Moody's Investors Service
    The $30 billion fiscal package and the monetary policy measures will mitigate the credit negative effects of the coronavirus financial stress, but at some fiscal costs.
    MARKET COMMENT
    19 Mar 2020|Moody's Analytics
    This report shows the industry exposures on deals and managers across US and European collateralized loan obligations (CLOs) as of March 16, 2020.