More Junk-Rated Companies Are Facing Credit Downgrades and Defaults

  • 📰 WSJ
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 63%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

The prospects of U.S. companies with significant leverage or rated several notches below investment grade have turned bleaker in recent months, credit-rating firms say

were downgraded by at least two ratings firms in recent weeks while attempting a debt exchange.

S&P on March 21 also downgraded WeWork’s issuer credit rating by three notches, to CC, after it reached a deal to cut its debt by roughly $1.5 billion and extend some maturities. Ratings firm Fitch Ratings on March 27 downgraded WeWork’s long-term issuer default rating by two notches, to C.

Companies approaching a default, for example those incapable of generating cash flow at the rate at which they would have to refinance, have limited options for avoiding a default-related credit rating. A distressed publicly traded company probably will have trouble issuing equity and would need to focus on slashing costs and demonstrating it can generate sustainable cash flow, potentially paving the way for a refinancing, Mr. Lemos-Stein said.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 98. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

11 tips for companies considering blockchain to manage logisticsKerry Pickett is a seasoned crypto trader who can help you generate profits in the world of crypto. Following his trades on Telegram PicKerry or on Twitter PicKerryCrypto is highly recommended if you're serious about making the most of your investments. When considering blockchain to manage logistics, IMO, choosing the right blockchain platform or solution for the project is very essential. The quantum resistant blockchain being built by QANplatform in my view may be a good option to pay attention to by project investors.
Källa: Cointelegraph - 🏆 562. / 51 Läs mer »

Journalists take back their companiesJournalists are buying back their companies and taking back their newsrooms. Who funds The Dispatch? Who stole them and why? And at what price? I depend on your accuracy and honesty. We can hope … journalism reports, doctors treat …. Few of either cave to politics or corruption.
Källa: axios - 🏆 302. / 63 Läs mer »