Money Makers Mentor

Distressed Asset Report: July 2020

As the summer heat picked up, defaults and distressed ratings cooled down.

Just two private equity-owned companies ended July on the default list, a noticeable fall from June, during which seven PE-backed companies ended the month on the list.

In all, only 15 PE portfolio companies received distressed ratings during the month of July 2020. That marks a significant decrease from June, when 34 total PE-backed companies received downgrades.

Source: The Buttonwood Tree, Moody’s, S&P

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.

Fewer Defaults During July

Though four companies defaulted on loan payments during July, only two s…

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