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S&P downgrades hit nearly 200 consumer companies during coronavirus outbreak

Restaurants and auto parts makers accounted for the largest share of the nearly 200 consumer companies downgraded by S&P Global Ratings in recent months amid the coronavirus pandemic, according to an S&P Global Market Intelligence analysis.

From Jan. 1 through April 6, the rating agency downgraded the long-term credit ratings of 192 companies in the consumer sector. All but five of those actions occurred during March and April as companies began to limit or close operations to help slow the spread of the virus and protect workers.

The TJX Cos. Inc.; The Kraft Heinz Co.; Marriott International Inc.; Carnival Corp. & PLC; Darden Restaurants Inc.; Aramark; and automakers including Bayerische Motoren Werke AG, Daimler AG and Ford Motor Co. are among the largest corporations downgraded by S&P Global Ratings. Some of the companies have also recently tapped their credit lines to shore up cash in response to the pandemic.

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More than half of the downgrades were against companies in the U.S., while Europe made up more than one-fifth of such actions.

The rating agency downgraded 18 restaurant companies and the same number of auto parts and equipment makers, representing the highest number of actions for any single industry in the sector.

The coronavirus crisis has rattled businesses around the globe, forcing automakers to close their factories in the U.S. and Europe and retailers to keep their doors shut. Governments have imposed lockdowns and social restrictions to curb the spread of the disease.

As of April 7, more than 79,000 people have died from COVID-19, the disease caused by the coronavirus, according to data from Johns Hopkins University's Center for Systems Science and Engineering.

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This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.