Reuters/Marc Jones/5-27-2020
“A total of 1,287 of S&P’s ratings are now on a downgrade warning – either with ‘negative outlooks’ where a move might take two years, or on ‘CreditWatch with negative implications’ where the risk is almost immediate.”
USAGOLD note: It is difficult to forecast the extent of financial damage that would be unleashed by a massive downgrade of credit-worthiness on the level this article articulates. Two-thirds of debt issuers – private and public – face downgrades the result of the COVID-19 pandemic with many risking “fallen angels” going from investment grade to junk overnight.
