{"id":52051,"date":"2020-03-30T18:02:38","date_gmt":"2020-03-30T23:02:38","guid":{"rendered":"https:\/\/olduvai.ca\/?p=52051"},"modified":"2020-03-30T18:02:40","modified_gmt":"2020-03-30T23:02:40","slug":"the-downgrade-massacre-has-started","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=52051","title":{"rendered":"The Downgrade Massacre Has Started"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/wolfstreet.com\/2020\/03\/27\/the-downgrade-massacre-has-started\/\">The Downgrade Massacre Has Started <\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Just astounding. So many downgrades in just of a couple of days. And zero upgrades. Here\u2019s who got hit.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I get \u201cMoody\u2019s Daily Alert\u201d in my inbox, which lists Moody\u2019s ratings actions for the day. The Alerts are usually a mix of a few upgrades and a few downgrades. Many times, there are no downgrades. Earlier this year, it became obvious without counting that the downgrades were starting to outnumber the upgrades by a large margin. But this week, the three Alerts were a torrent of 69 downgrades and zero upgrades. This is something I haven\u2019t seen since I started subscribing to this service years ago. Some of the downgrades were by multiple notches in one fell swoop.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This ratio of zero upgrades to 69 downgrades by Moody\u2019s this week is a hair-raising deterioration of the already downgrade-heavy ratings actions so far this year. Moody\u2019s has now downgraded over 180 companies this year, 69 of which I got in my inbox just this week!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, these Alerts contained a torrent of warnings about \u201cratings on review for further downgrade\u201d or \u201cnegative outlook,\u201d meaning downgrades, or additional downgrades are to come.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The analysts at Moody\u2019s must be working overtime putting together their downgrade reports, and they\u2019ve fallen behind, and it\u2019s going to take them a while to catch up. Meanwhile, they issue warnings about what they\u2019ve got in their downgrade pipeline.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, this week, Moody\u2019s downgraded Ford\u2019s senior credit rating one notch deeper into junk (to Ba2). Ford\u2019s corporate family rating is already Ba2. Moody\u2019s warned that it placed the ratings under review for further downgrade.&nbsp;<a href=\"https:\/\/www.moodys.com\/research\/Moodys-downgrades-Ford-senior-debt-rating-to-Ba2-from-Ba1--PR_420583\">Moody\u2019s said<\/a>&nbsp;the ratings \u201creflect what is an already-stressed credit profile and a very long-term restructuring program. The company is now additionally burdened by the prospect of a severe and prolonged decline in automotive markets precipitated by the coronavirus.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Downgrade Massacre Has Started Just astounding. So many downgrades in just of a couple of days. And zero upgrades. Here\u2019s who got hit. I get \u201cMoody\u2019s Daily Alert\u201d in my inbox, which lists Moody\u2019s ratings actions for the day. The Alerts are usually a mix of a few upgrades and a few downgrades. Many [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7792,1548,4254,4255],"class_list":["post-52051","post","type-post","status-publish","format-standard","hentry","category-economics","tag-downgrade","tag-ratings-agency","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=52051"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52051\/revisions"}],"predecessor-version":[{"id":52052,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52051\/revisions\/52052"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}