These Are Debt-Bloated Companies the Coronavirus Threatens to Drag Down
- Airlines, casinos, energy companies among those under pressure
- Spreading virus may squeeze credit ratings, hinder refinancing
A pedestrian in a face mask passes the Casino Lisboa, operated by SJM Holdings, in Macau.
Photographer: Justin Chin/BloombergThis article is for subscribers only.
From Richard Branson’s Australian airline to U.S.-based cinema chains and casino operators, the companies most vulnerable to the coronavirus outbreak are facing mounting pressure in global credit markets.
An escalating outbreak that drives off customers and revenue could lead to ratings downgrades, hinder refinancing efforts, and in some cases trigger defaults. And it’s more than just travel companies: Debt-laden commodities producers, shipping firms and luxury automakers have endured waves of selling by bondholders as they ratchet down expectations for global growth.