Prolonged Credit Turbulence for Global Airlines
Air travel is currently running at about 50% of its pre-pandemic peak and the sector still faces uncertainty from new virus variants, patchy tourism traffic and a shift in business travel norms. While many Global Airlines are unrated by traditional agencies, consensus credit risk data shows that 80% of the sector is below investment grade – but some remain good credit risks.
Credit Strength Dampens Wildfire Risk for US Electricity Firms
Wildfires are growing in intensity and frequency, and in the US are sometimes attributed to outdated electricity infrastructure, presenting a legal hurdle for companies in the sector. Addressing these issues requires investment, and companies with stronger credit ratings are better placed to fund the necessary capital spending. This note looks at the credit profile and recent trends for 371 US electricity companies.
Credit Trends: Focus on Australia
Australia has so far weathered the Covid storm in reasonable shape, and is one of the few Sovereigns rated AAA by the three largest traditional rating agencies. A credit consensus rating of aa+ reflects a slightly more cautious Bank view. This research analyses a number of Australian industries, sectors and companies to demonstrate the Covid effect on national credit quality comparative to global trends.
Global Credit Recovery Gathers Pace
As vaccine rollout varies globally, it is clear that the economic bounceback from Covid will be led by the largest and most developed economies. Overall vaccination figures show that the global pandemic is far from over; but trends in the credit consensus are already giving some clues to the shape of the expected global economic recovery.
Is Staying In the New Going Out? Shifting Recreational Trends in Credit
As widespread lockdowns forced millions indoors in 2020, consumer spending habits shifted from live entertainment and travel to home-based recreation. But how did the credit fortunes of each sector of leisure providers compare before COVID – and is a shift in leisure habits likely to persist?
Trade Credit Risk and Supply Chains: The Post-Pandemic Landscape
Supply chains and trade credit are now critical in a post-COVID world. With disruption the new status quo, trade volumes are likely to fluctuate in the coming months. Though technology is helping to create more flexible supply chains. there is a long way to go to repair the damage from COVID. It is more important than ever for businesses to understand the end-to-end credit risk of their supply chains. This whitepaper demonstrates how credit consensus ratings provide part of the solution.
Top Polluters Have More Credit Risk – and Are Mainly State-Owned
With environmental awareness becoming a more significant influence on the way we consume and invest, how do the largest CO2 emitting organisations stack up from a credit perspective? And does public versus private ownership impact projected emissions and credit risk?
Credit Risk Case Study: REITs vs Tenants
In the credit risk assessment of a commercial real estate investment trust (REIT), the credit risk of the REIT itself and of its tenants is considered. But what does it mean when the two are at odds? This case study analyses the consensus credit risk of Boston Properties and its top 20 tenants.
Forestry and Paper: Credit Recovers as Lumber Prices Skyrocket
Lumber prices have tripled since June 2020 as sawmills lay idle during pandemic lockdowns and supply constraints have collided with a spike in homebuilding demand. Will this boost allow forestry and paper companies to thrive post-COVID?
Companies Led by Women Deemed Less Risky, Fare Better in Crisis
Studies have shown that female-led companies outperform male-led companies on a range of metrics, yet women continue to be perceived as less suitable for leadership roles than men. New analysis from Credit Benchmark suggests that female-led companies are also a better credit risk, particularly in times of economic turmoil.
