Coronavirus Credit Effects
The economic and trade disruption caused by the coronavirus outbreak is spreading from the APAC region to the rest of the world. The impact on issuers’ credit profiles will depend on the severity and duration of the crisis.
  • SUMMARY
  • REPORTS

  • OUTLOOK
    06 Mar 2020|Moody's Investors Service
    The global spread of the coronavirus is resulting in shocks that will likely slow economic activity significantly, particularly in the first half of this year. We have therefore revised down our 2020 baseline growth forecasts for all G-20 economies.

    VIDEO
    VIDEO
    05 Mar 2020|Moody's Analytics
    Mark Zandi of Moody’s Analytics discusses the looming threat of COVID-19 on the global economy including highly impacted sectors, investor considerations, and aggressive government actions that can ease the potential downturn.
    Credit effects in APAC
    ISSUER COMMENT
    28 Feb 2020|Moody's Investors Service
    Timely fiscal stimulus lowers near-term economic risks but will leave the government with a wider fiscal deficit and higher debt relative to peers, a key credit weakness.

    SECTOR COMMENT
    27 Feb 2020|Moody's Investors Service
    The ten-fold surge in coronavirus infections in Korea in around a week is credit negative for rated Korean companies across many sectors, particularly auto and tech companies, over the short term. The disruption to Korea-based production lines and weakening domestic demand poses further risks to the country’s 2020 GDP growth outlook, which we had lowered to 1.9% from 2.1% earlier this month.
    SECTOR COMMENT
    24 Feb 2020|Moody's Investors Service
    The outbreak may delay or reduce the funding LGFVs receive from their RLG owners. But LGFVs will continue to receive support and maintain access to funding, which will help them refinance.
    Credit effects in EMEA
    OUTLOOK
    02 Mar 2020|Moody's Investors Service
    Our outlook for the European automotive parts supplier industry is negative. This reflects our expectations for fundamental industry business conditions over the next 12 to 18 months.

    SECTOR COMMENT
    26 Feb 2020|Moody's Investors Service
    The outbreak of the virus in the northern regions of Italy – which account for around 41% of the country’s GDP – adds further downside to the Italian economy’s already weak growth outlook, and increases the risk of Italy sliding into recession. Although the scale and duration of the impact is highly uncertain at this stage, temporary disruption to consumption and production is highly likely.
    SECTOR COMMENT
    14 Feb 2020|Moody's Investors Service
    Chinese tourists are a relatively small proportion of visitors to Europe, but if they stay away for an extended period because of the coronavirus some companies' credit quality could suffer.
    Credit effects in Americas
    ANALYSIS
    03 Mar 2020|Moody's Analytics
    This report provides insights by Moody’s Analytics analysts on COVID-19’s effect on US multifamily and commercial real estate.

    SECTOR IN-DEPTH
    02 Mar 2020|Moody's Investors Service
    The spreading coronavirus outbreak will weaken first-quarter earnings for North American chemical companies that draw significant sales to China or with large production facilities there.
    SECTOR IN-DEPTH
    19 Feb 2020|Moody's Investors Service
    The coronavirus outbreak is a credit negative for US luxury and apparel companies that are more reliant on the region for sales and sourcing.