As the U.S. economy continues to feel the wrath of COVID-19, companies continue to falter. More private equity-owned companies received a distressed asset rating in August than in July.
Though the month-to-month total increased, the numbers remain lower than the summer highs of June. Defaults also remained stable, with only two private equity-owned companies ending August on the default list, the same number as July.
In all, 21 private equity portfolio companies received distressed ratings during the month of August 2020.
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.
Defaults Remain …