Thirty-nine private equity-sponsored companies are at risk of bankruptcy, due to COVID-19, which continues to wreck havoc across the economy.
These are companies that received distressed ratings from March 6 through March 27. Distressed ratings are defined as an issuer credit rating of B-, or lower with a negative outlook from S&P or a corporate family rating of Caa1 or lower with a negative outlook from Moody’s.
The Consumer Discretionary sector was the hardest hit,
leading by far with 21 companies at risk, or 54 percent. Within Consumer
Discretionary, Retail was the most affected subsector, with six companies at
risk, or 29 percent. Consumer Staples, Energy, and Industrials sectors each had
four companies receive ratings.
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