Pursuits
Sotheby's Debt Spike Could Lead to Rating Downgrade by Moody's
- Auctioneer's credit line increased by 140% in 18 months
- Debt level is higher than during recession, rating firm says
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Three months after Sotheby’s said it doubled its credit line to finance art loans to clients, Moody’s Investors Service warned that the debt spike could hurt the auctioneer’s credit rating in a downturn.
“The art market is highly cyclical,” Margaret Taylor, Moody’s senior vice president, wrote in a report published Monday. “It’s not ‘if,’ it’s ‘when’ there will be a down cycle."