Money Makers Mentor

Distressed Asset Monthly Report: June

The amount of casualties left in the wake of COVID-19 continues to tally. Seven additional private equity-owned companies defaulted in June, six by way of the Consumer Discretionary sector.

In all, 34 private equity portfolio companies received distressed ratings during the month of June 2020.

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.

Defaults and Chapter 11 Filings

The majority of affected companies continue to pour in from the Consumer Discretionary sector. The sector accounted for 41% of companies to receive a distressed rating. Further, it made up all but one company to default.

Of the six defaults within Consumer Discre…

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