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.

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345 Documents

Title	Issuer/Entity
Building Materials – US: Outlook cut to negative with coronavirus outbreak likely to hurt private construction 30 MAR 2020\|Outlook\|MOODY'S INVESTORS SERVICE The negative sector outlook reflects our expectation for weak private construction activity amid the coronavirus outbreak. Operating income growth will contract by at least 3% in 2020.
PUG LLC (Viagogo): Update following change in outlook to negative 30 MAR 2020\|Credit Opinion\|MOODY'S INVESTORS SERVICE Revenues and cash flow will be depressed in 2020 due to the impact of the COVID-19 outbreak. These risks are partially mitigated by the company's liquidity and variable cost structure.	PUG LLC (Viagogo)
Financial Institutions – Global: Government coronavirus aid has near-term benefits, but could raise long-term risks 30 MAR 2020\|Sector In-Depth\|Credit Risks in Turbulent Times\|MOODY'S INVESTORS SERVICE While broad response programs mitigate near-term risks to financial institutions, elements such as payment holidays and forbearance on capital standards may increase long-term risks.
Discovery Communications, LLC: Postponed Olympics prompts company to pull 2020 outlook, may slow growth strategy 30 MAR 2020\|Issuer In-Depth\|MOODY'S INVESTORS SERVICE Discovery pulls 2020 guidance following postponed Tokyo Olympics - will benefit Q3 earnings, but signals risks over next year. Ratings and outlook unaffected at present.	Discovery Communications, LLC
State and local government - US: Special tax revenue will weaken as coronavirus slows economy and travel 30 MAR 2020\|Sector In-Depth\|MOODY'S INVESTORS SERVICE Tax revenue securing special tax debt, particularly revenue from hospitality and travel activities, will weaken as the coronavirus causes travel restrictions and an economic slowdown.
Aareal Bank AG: Aareal Bank proposes high dividend payout for now, a credit negative 30 MAR 2020\|Issuer Comment\|MOODY'S INVESTORS SERVICE Aareal Bank is still considering paying out a large share of its 2019 profit as dividends rather than strengthening its capital buffers amid a likely shock to the global economy.	Aareal Bank AG
Government of India: Coronavirus lockdown will sharply curb growth, despite offsetting policy action; could exacerbate fiscal pressures 30 MAR 2020\|Issuer Comment\|MOODY'S INVESTORS SERVICE We have reduced our real GDP growth forecast for India for 2020 to 2.5% from 5.3%, but there remains significant downside risk.	India, Government of
Banking – France: French government's guaranteed loans will mitigate coronavirus' negative effect on banks 30 MAR 2020\|Sector Comment\|MOODY'S INVESTORS SERVICE The French state will guarantee 75%-90% of the amount of these loans, while banks will bear the remaining risk. These measures will mitigate the negative pressure on banks.
Banks – Kenya: Kenya's policy measures will reduce coronavirus' credit-negative effect on banks 30 MAR 2020\|Sector Comment\|MOODY'S INVESTORS SERVICE Monetary and fiscal policy measures, among others, will help curb the credit-negative effect on Kenyan banks' asset quality, profitability and liquidity.
Sovereigns – Global: Low-rated sovereigns with large external repayments, reliant on private sector creditors vulnerable to contagion risks 30 MAR 2020\|Sector In-Depth\|Credit Risks in Turbulent Times\|MOODY'S INVESTORS SERVICE Non-investment grade emerging market sovereigns with near-term Eurobond maturities and that rely on private sector external funding are most vulnerable in the current environment.

Title	Issuer/Entity
Building Materials – US: Outlook cut to negative with coronavirus outbreak likely to hurt private construction 30 MAR 2020\|Outlook\|MOODY'S INVESTORS SERVICE The negative sector outlook reflects our expectation for weak private construction activity amid the coronavirus outbreak. Operating income growth will contract by at least 3% in 2020.
PUG LLC (Viagogo): Update following change in outlook to negative 30 MAR 2020\|Credit Opinion\|MOODY'S INVESTORS SERVICE Revenues and cash flow will be depressed in 2020 due to the impact of the COVID-19 outbreak. These risks are partially mitigated by the company's liquidity and variable cost structure.	PUG LLC (Viagogo)
Financial Institutions – Global: Government coronavirus aid has near-term benefits, but could raise long-term risks 30 MAR 2020\|Sector In-Depth\|Credit Risks in Turbulent Times\|MOODY'S INVESTORS SERVICE While broad response programs mitigate near-term risks to financial institutions, elements such as payment holidays and forbearance on capital standards may increase long-term risks.
Discovery Communications, LLC: Postponed Olympics prompts company to pull 2020 outlook, may slow growth strategy 30 MAR 2020\|Issuer In-Depth\|MOODY'S INVESTORS SERVICE Discovery pulls 2020 guidance following postponed Tokyo Olympics - will benefit Q3 earnings, but signals risks over next year. Ratings and outlook unaffected at present.	Discovery Communications, LLC
State and local government - US: Special tax revenue will weaken as coronavirus slows economy and travel 30 MAR 2020\|Sector In-Depth\|MOODY'S INVESTORS SERVICE Tax revenue securing special tax debt, particularly revenue from hospitality and travel activities, will weaken as the coronavirus causes travel restrictions and an economic slowdown.
Aareal Bank AG: Aareal Bank proposes high dividend payout for now, a credit negative 30 MAR 2020\|Issuer Comment\|MOODY'S INVESTORS SERVICE Aareal Bank is still considering paying out a large share of its 2019 profit as dividends rather than strengthening its capital buffers amid a likely shock to the global economy.	Aareal Bank AG
Government of India: Coronavirus lockdown will sharply curb growth, despite offsetting policy action; could exacerbate fiscal pressures 30 MAR 2020\|Issuer Comment\|MOODY'S INVESTORS SERVICE We have reduced our real GDP growth forecast for India for 2020 to 2.5% from 5.3%, but there remains significant downside risk.	India, Government of
Banking – France: French government's guaranteed loans will mitigate coronavirus' negative effect on banks 30 MAR 2020\|Sector Comment\|MOODY'S INVESTORS SERVICE The French state will guarantee 75%-90% of the amount of these loans, while banks will bear the remaining risk. These measures will mitigate the negative pressure on banks.
Banks – Kenya: Kenya's policy measures will reduce coronavirus' credit-negative effect on banks 30 MAR 2020\|Sector Comment\|MOODY'S INVESTORS SERVICE Monetary and fiscal policy measures, among others, will help curb the credit-negative effect on Kenyan banks' asset quality, profitability and liquidity.
Sovereigns – Global: Low-rated sovereigns with large external repayments, reliant on private sector creditors vulnerable to contagion risks 30 MAR 2020\|Sector In-Depth\|Credit Risks in Turbulent Times\|MOODY'S INVESTORS SERVICE Non-investment grade emerging market sovereigns with near-term Eurobond maturities and that rely on private sector external funding are most vulnerable in the current environment.