S&P reaches 1,287 possible downgrades
The risk rating agency has warned that this trend could worsen in the coming months
The credit rating agency S&P Global has warned that in recent weeks there has been an increase in the possible downgrades of the credit notes that it awards until reaching historical figures, above even those observed after the last financial crisis.
In a report published this Wednesday, the firm has indicated that on April 28 it registered 1,287 possible credit downgrades, compared to the 860 cases in March and the 649 that occurred at the end of February.
The figure recorded during these first months of the crisis caused by the Covid-19 coronavirus exceeds even the highest reading observed after the financial crisis, when in April 2009 S&P recorded 1,028 possible downgrades of credit notes.
“Overall, we were expecting major credit erosion in the coming months as issuers, especially those in the low-end spectrum, are under intense pressure from poor results, continued difficulties in managing cost structures and market volatility, which creates limited financing opportunities,” said S&P Global analyst Sudeep Kesh.
The risk rating agency has warned that this trend could worsen in the coming months, so it is possible that a new record will be reached during this second quarter of the year.
Source: dpa
