A more cautious consumer and heavy debt loads are putting the squeeze on more retailers.
Moody’s Investors Service forecast debt defaults would “speed up,” with the U.S. retail and apparel speculative-grade default rate increasing to eight.6 percent for 2023 from 6 percent currently.
“In a pointy reversal because the benign conditions of 2021, which lasted through September 2022, defaults have since spiked, driven by a dearth of debt financing, high rates of interest, surging costs, declining discretionary goods spending and provide chain challenges,” the credit watchdog said in a latest evaluation.
“Strong balance sheets are actually much more essential,” Moody’s said.
The sector registered seven defaults since September, as opposed to simply one throughout the prior yr; amongst them were the Bed, Bath &...
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