Rating agencies ‘doing their jobs’ in coronavirus crisis

Fallen angel 230x140
By Owen Sanderson
06 Apr 2020

Investors see the rapid wave of downgrades in response to the coronavirus crisis as evidence that rating agencies are “doing their jobs”, compared to their responses during the 2008 financial crisis.

But the rapid round of downgrades could initiate pro-cyclical effects, preventing some companies from accessing government support schemes and pushing others out of indices crucial for keeping passively managed capital invested.

“Moody’s, S&P and Fitch — all the big agencies are trying to be proactive, really moving pieces ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial