Coronavirus Effects
The coronavirus outbreak is disrupting economies and credit markets worldwide. The impact on issuers’ credit profiles and the economy will depend on the severity and duration of the crisis.
  • SUMMARY
  • REPORTS
  • Videos & podcasts
  • CRE Impact Dashboard
  • Live View
  • News Sentiment Analysis
  • Moody's response to the pandemic
  • Global Ratings Review Summaries
    SECTOR PROFILE
    01 Jun 2020|Moody's Investors Service
    This report highlights our research insights and rating activities in the week ended 29 May.
    SECTOR PROFILE
    27 May 2020|Moody's Investors Service
    The credit impact of the pandemic has manifested via three broad channels: lower growth, the fall in oil prices, and reduced access to financing. Of the 54 mostly negative sovereign rating actions that we have announced so far this year, 23 were the direct result of the coronavirus pandemic.
    SECTOR IN-DEPTH
    12 May 2020|Moody's Investors Service
     Over the past 100 years, ratings have often moved together with the credit cycle, exhibiting procyclical behaviour. However, there is no indication that ratings have amplified market cycles.

    VIDEO
    29 May 2020|Moody's Analytics
    In this interview, Moody's Analytics Chief Economist APAC Steve Cochrane, talks about our views on the state of China’s economy, its relationship with the global recovery, “decoupling” and other risks on the horizon.
    Coronavirus Policy ResponseView more
    SECTOR IN-DEPTH
    01 Jun 2020|Moody's Investors Service
    China's government released its policy focus for 2020, which includes a moderate degree of fiscal support for the economy, accommodative monetary policies and measures to support employment. The policies will have varying credit effects on different sectors of the economy.
    SECTOR IN-DEPTH
    28 May 2020|Moody's Investors Service
    Policy responses provide some protection for economies, but will increase debt. Governments who fail to present credible strategies to repair balance sheets will likely face credit pressure.
    Macroeconomic commentaries and scenarios
    WEBINAR REPLAY
    29 May 2020|Moody's Analytics
    Join Moody’s Analytics Scott Hoyt and David Fieldhouse as they discuss the current and anticipated trends in household credit conditions based on data from Equifax.
    WEBINAR REPLAY
    20 May 2020|Moody's Analytics
    In this webinar, Moody’s Analytics economists discuss Middle East’s macroeconomic outlook.

    SECTOR COMMENT
    05 May 2020|Moody's Investors Service
    About a third of household consumption will either be postponed or lost during the lockdown period. The impact on GDP and corporates will vary, with France and Germany likely perform better.
    OUTLOOK
    28 Apr 2020|Moody's Investors Service
    We have lowered our 2020-21 real GDP forecasts for all G-20 economies, as the coronavirus crisis has led to a near shutdown of the global economy. The coronavirus also will have long-term economic implications that reshape trade, consumption patterns, and the nature of work in some sectors.
    Coronavirus impact on sectorsView more
    SECTOR COMMENT
    02 Jun 2020|Moody's Investors Service
    Of the nearly 200 rated infrastructure companies in our Asia-Pacific portfolio, 28% have moderate exposure to coronavirus disruption (up from 23%) and 5% have high exposure (down from 9%).

    SECTOR IN-DEPTH
    03 Jun 2020|Moody's Investors Service
     The market will remain tough for miners over the next few months until consumers' appetite for diamond jewellery returns and cutters and polishers increase rough diamond purchases.
    OUTLOOK
    02 Jun 2020|Moody's Investors Service
     US homebuilders will continue to face home sales declines and lower revenue as the ripple effects of the coronavirus pandemic disrupt construction and demand.

    SECTOR IN-DEPTH
    01 Jun 2020|Moody's Investors Service
     Property taxes will remain the most stable revenue source for US local governments despite near-term and long-term challenges presented by the coronavirus pandemic.
    SECTOR IN-DEPTH
    31 May 2020|Moody's Investors Service
     Through the end of this year, the economic shock from the coronavirus pandemic and related slowdown of economic activity will further weaken insurers' credit metrics.

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    PODCAST
    29 May 2020|Moody's Investors Service
    David Keisman and Julia Chursin discuss why US corporate defaults during the pandemic are likely to produce bigger losses for investors. Erosion in credit quality, structure and covenants will suggest worse debt recoveries for first-lien bank debt in particular. Meanwhile, the prevalence of distressed debt exchanges will not be sufficient to stave off subsequent defaults if the downturn’s duration is protracted.​
    SECTOR IN-DEPTH
    28 May 2020|Moody's Investors Service
     Higher mortgage loan delinquencies and defaults will diminish US life insurers' credit strength, particularly for companies with significant exposures to retail and lodging.