At least 24 companies received downgrades or revisions on high yield bond ratings during the week of October 26 – October 30, 2020. These downgrades caused S&P Global Ratings to issue a negative or watch negative outlook to all of the companies. The Energy sector saw the majority of downgrades during this week.
Here is a snapshot of some downgrades throughout the week:
Immunomedics Inc. bought Gilead Sciences Inc., a U.S. pharmaceutical maker, for $21 billion. Considering the cash and debt the acquisition, S&P believes the Gilead’s leverage advances to roughly 2.5x.
The company’s rating was downgraded to BBB+ and removed from CreditWatch, but not without negative implications.
The company also has elevated pressure to generate new reve…