The CreditRiskMonitor^® Blog

Even with government intervention, trade credit insurance is waning at the exact time when it is needed most. The longer the coronavirus persists, the more bankruptcies will ensue and the harder it will likely become to acquire trade insurance.

Heavily indebted public companies - including perhaps theaters near you - are reeling as countries around the world shut their economies to slow the progress of COVID-19.

The coronavirus has unleashed the global debt crisis that CreditRiskMonitor has been predicting. Credit professionals need to take action to ensure that they aren’t unduly impacted by delayed payments and bad debt write-offs.

The longer the coronavirus persists, the harder it will be for health services operators to avoid bankruptcy, quite similar to what recently transpired with Quorum Health Corporation.

In a recent webinar with leading credit experts, CreditRiskMonitor CEO Jerry Flum noted that a world built on nonfinancial corporate debt is susceptible to mass bankruptcy in the wake of the COVID-19 pandemic.

Sentiment data, farmed from leading credit managers who subscribe to our service, is pointing to extreme bankruptcy risk in a growing list of leading oil and gas giants.

Today, bond rating agencies are downgrading corporate credit at a faster pace than any point in the last decade. The coronavirus has sapped product and services demand and disrupted global supply chains.

CreditRiskMonitor warned of the increased bankruptcy risk at newspaper owner McClatchy Company for more than a year before their Chapter 11 filing in February 2020. Yet McClatchy Company is not an isolated case and risk professionals should be monitoring other news provider outlets closely.

Here's a list of the 10 largest energy industry failures since 2013, as well as some of the riskiest companies that CreditRiskMonitor covers today. These companies should be watched closely as the current oil and natural gas price cycle continues to run its course.

The FRISK® score downgraded retailers and restaurants in February and March following the market sell-off stemming from coronavirus.

The decline and demise of oil services giant McDermott International, Inc. was missed by many due to an unwise reliance on trade payment data analysis. When it comes to public companies and bankruptcy prediction, payment data doesn't work.

CreditRiskMonitor anticipates tighter access to credit in the years ahead and an escalation in bankruptcy filings – if we’re not heading for a recession, it may be a depression.