Economic reopening and depressed worldwide rig counts have led to energy prices heading back in a positive direction. Yet this recovery hasn't resulted in an equal improvement throughout the energy patch.
If you work in the volatile oil and gas industry, not a single day should go by where you do not have a read on corporate credit risk. It could save your company millions in the long run.
The FRISK® score is a game-changing tool that combines several key inputs to assess bankruptcy risk. Here’s how bond agency ratings play a role.
With inflation running hot, the U.S. Federal Reserve has embarked on a rate hike agenda. Financially weak companies with material near-term maturities are struggling and, in some cases, bankruptcy could be imminent.
With inflation at a 40-year high and interest rate hikes beginning to be implemented, more and more overleveraged companies with sinking FRISK® scores are in greater danger of bankruptcy in 2022.
Central banks worldwide are suppressing borrowing rates to accommodate credit markets, trying to alleviate financial pressures on corporations. This is creating a surge of "zombie companies," or firms that are staying alive in spite of their inability to service interest expenses.
Sanctions have delivered significant financial stress to the Russian government and corporations alike. Overall, many Russian companies have dropped into – or have sunk further down into – the FRISK® score red zone, indicating heightened financial stress and corporate failure risk.
The Federal Reserve recently voiced concerns about excessive corporate financial leverage - and risk management departments need to take heed.
What are the root causes of the failure of risk models to provide adequate warning? After nearly 25 years of company operation and observation, CreditRiskMonitor® has identified four common problems among competing risk models.