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COVID-19 Activity In Global Structured Finance For The Week Ending May 8, 2020

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COVID-19 Activity In Global Structured Finance For The Week Ending May 8, 2020

S&P Global Ratings took 214 rating actions across the various structured finance sectors globally during the week ended May 8, 2020 as a result of the COVID-19 pandemic (see table 1). The regional breakdown is as follows:

  • North America: 193 rating actions (189 ratings placed on CreditWatch negative and four downgrades);
  • Europe, the Middle East, and Africa (EMEA): 19 rating actions (17 ratings placed on CreditWatch negative and two rating outlooks revised to negative); and
  • Latin America: two rating actions (one downgrade and one rating lowered and placed on CreditWatch negative).

Table 1

Structured Finance Rating Activity For May 4, 2020 - May 8, 2020(i)
North America EMEA Latin America
Rating action CLO CMBS Triple net lease ABS TOB Total RMBS Covered bonds Total Future flows Total
Negative CreditWatch placement 12 123 29 25 189 17 - 17 - -
Downgrade - - - 4 4 - - - 1 1
Downgrade with negative CreditWatch placement - - - - - - - - 1 1
Outlook revised to negative - - - - - - 2 2 - -
Total 12 123 29 29 193 17 2 19 2 2
(i)Based on an aggregate count of rating actions listed in our public press releases published in the week indicated. We will be updating this summary table on a weekly basis, which may be subject to revisions from time to time. For the most up-to-date version, refer to the most recent publication. CLO--Collateralized loan obligation. CMBS--Commercial mortgage-backed securities. ABS--Asset-backed securities. RMBS-Residential mortgage-backed securities. TOB--Tender option bond.

We have taken 1,104 structured finance rating actions this year (through May 8, 2020) due to the impact of the COVID-19 pandemic and/or the decline in oil and gas prices (see table 2 and the chart). The regional breakdown as follows:

  • North America: 980 rating actions (937 ratings placed on CreditWatch negative, 38 downgrades, and five ratings lowered and placed on CreditWatch negative);
  • EMEA: 83 rating actions (80 ratings placed on CreditWatch negative and three rating outlooks revised to negative); and
  • Latin America: 41 rating actions (37 ratings placed on CreditWatch negative, two downgrades, one rating lowered and placed on CreditWatch negative, and one rating withdrawn).

Table 2

Structured Finance Rating Actions Through May 8, 2020(i)
North America
Rating action RMBS ABS auto lease ABS auto dealer floorplan ABS whole business CMBS Repack Aircraft CLO TOB VRDO Triple net lease ABS Total
Downgrade - - - - - 12 - - 24 2 - 38
Negative CreditWatch placement 238 3 19 13 124 2 77 407 25 - 29 937
Downgrade with negative CreditWatch placement - - - - - - - 4 1 - - 5
Withdrawal - - - - - - - - - - - 0
Total(ii) 238 3 19 13 124 14 77 411 50 2 29 980
EMEA Latin America
Rating action CMBS Corporate securitization(iii) CLO ABS rental fleet Covered bonds(iv) RMBS Total ABS consumer CMBS Future flow Receivables Repack Total
Downgrade - - - - - - 0 - - 2 - - 2
Negative CreditWatch placement 3 41 18 1 - 17 80 18 2 - 14 3 37
Downgrade with negative CreditWatch placement - - - - - - 0 - - 1 - - 1
Withdrawal - - - - - - 0 1 - - - - 1
Negative outlook - - - - 3 - 3 - - - - - 0
Total(v) 3 41 18 1 3 17 83 19 2 3 14 3 41
(i)Based on an aggregate count of rating actions listed in our public press releases. We will be updating this summary table on a weekly basis, which may be subject to revisions from time to time. For the most up-to-date version, refer to the most recent publication. (ii)Generally includes all public rating actions related to the COVID-19 impact and/or the decline in oil prices. (iii)Includes seven SPURs. (iv)Outlooks generally limited to covered bonds. (v)Generally includes all public rating actions related to the COVID-19 impact. ABS--Asset-backed securities. CLO--Collateralized loan obligation. CMBS--Commercial mortgage-backed securities. TOB--Tender option bond. VRDO--Variable rate demand obligation. SPURs--S&P Global Ratings underlying ratings.

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S&P Global Ratings acknowledges a high degree of uncertainty about the rate of spread and peak of the coronavirus outbreak. Some government authorities estimate the pandemic will peak about midyear, and we are using this assumption in assessing the economic and credit implications. We believe the measures adopted to contain COVID-19 have pushed the global economy into recession (see our macroeconomic and credit updates here: www.spglobal.com/ratings). As the situation evolves, we will update our assumptions and estimates accordingly.

Copy and paste the below URL into your browser to download an Excel workbook containing a list of rating actions for the previous week:

https://www.spglobal.com/ratings/_division-assets/excel/79COVID19ActivityMay8.xls

Key Publications

This report does not constitute a rating action.

Primary Credit Analyst:Winston W Chang, New York + 1 (212) 438 8123;
winston.chang@spglobal.com
Secondary Contacts:James M Manzi, CFA, Washington D.C. (1) 434-529-2858;
james.manzi@spglobal.com
Brenden J Kugle, Centennial + 1 (303) 721 4619;
brenden.kugle@spglobal.com

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