Historic Oil Crash Exposes Energy Firms That Binged on Debt
- Energy firms face $88 billion debt bill as investors flee risk
- In Asia, Vedanta and Medco Energi among worst sold-off bonds
This article is for subscribers only.
From Indian tycoon Anil Agarwal’s metals and mining company to American shale explorers, the historic crash in oil prices has left energy companies that loaded up on debt vulnerable.
With a global recession looking increasingly likely, commodities firms whose finances were already crumbling due to the outbreak of the coronavirus are suddenly on even shakier ground. In the U.S., defaults by energy companies are likely to exceed the 2016 peak and the risk of so-called fallen angels -- or companies that go from investment-grade to junk -- has risen, according to Morgan Stanley.