Asian Junk-Rated Corporates Get Downgraded at Record Pace

(Bloomberg) -- The coronavirus pandemic is causing unprecedented rating downgrades of non-financial Asian high-yield companies, according to Moody’s Investors Service. Moody’s lowered credit ratings on 41 junk-grade firms in the first half, while raising credit scores for just three, with a record 22 downgrades and no upgrades in the second quarter alone. The rater warned that the impact from the pandemic may push defaults higher in the region as refinancing remains difficult for non-investment grade companies, which are facing $53 billion of bond redemptions by the end of 2020.

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