At least 15 companies received downgrades or revisions on high yield bond ratings during the week of August 10 – August 14, 2020. These downgrades caused S&P Global Ratings to issue a negative or watch negative outlook. The Consumer Discretionary sector saw the majority of downgrades during this week.
Here is a snapshot of some of the downgrades throughout the week:
Cinemark USA Inc. was downgraded to B+ due to the surge in coronavirus numbers. The surge led to a delay in theater re-openings.
S&P believes the company has enough liquidity to survive the decline in sales from the shutdowns. However, the company’s leverage is expected to remain high through 2021. Therefore, its long-term rating was revised from B+ to BB-.
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