At least 21 companies received downgrades or revisions on high yield bond ratings during the week of August 17 – August 21, 2020. These downgrades caused S&P Global Ratings to issue a negative or watch negative outlook. The Energy sector saw the majority of downgrades during this week.
Here is a snapshot of some of the downgrades throughout the week:
Cremo, a men’s grooming company, bought the U.S.-based Edgewell Personal Care Co. for $235 million in cash. The outlook has been revised from stable to negative considering a weak economy from the COVID-19 pandemic.
The acquisition during an economic downturn may increase the company’s leverage by 4 times and reduce liquidity. However, S&P recognizes the company’s popular brands of men’s care products and c…