The challenged consumer environment will continue to pressure retailers and restaurants, which spells trouble for the collective group but especially for operators with red zone FRISK® scores.
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CreditRiskMonitor currently estimates that financial losses stemming from U.S. public company bankruptcies alone will be in excess of $1.1 trillion, a greater figure than what was lost during the Great Recession.
The FRISK® score routinely identifies zombies across all industries. In fact, total high-risk companies worldwide have increased by nearly 50% since October 2021, which indicates another wave of bankruptcies is on the horizon.
The global economy appears to have deteriorated in a significant way during 2019 given the trends in negative-yielding debt.
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.
The Federal Reserve recently voiced concerns about excessive corporate financial leverage - and risk management departments need to take heed.
Commercial bankruptcies in the United States increased for the first time since 2009. Record corporate debt and waning business confidence are striking developments regardless of which industry you are operating within.
Here are some high-profile public companies that risk professionals must monitor closely as we reach 2021's midpoint. Credit risk may have receded some in recent months, but the spectres of debt and potential bankruptcy loom larger than ever.
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.