KBRA Releases Research – Coronavirus (COVID 19): Private Corporate Credit Market Poised for Resiliency

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases research that examines the impact of the new coronavirus (COVID-19) on the private corporate credit market.

Despite currently challenging times, KBRA believes that the private corporate credit markets (part of the nonbanks or so-called shadow banking sector) will be able to better minimize systemic risk against a potential wave of defaults and insolvencies versus banks during past crises.

KBRA expects that asset managers with strong networks, sector expertise, demonstrated underwriting capabilities, scale, and available capital to capitalize on market dislocations caused by COVID-19. While there will undoubtedly be stress, the nuances of the various investment strategies through which many nonbank lenders take corporate credit risk, coupled with the nonbank institutional framework for the majority of investors, should lessen the impact of this crisis compared to those of the past.

KBRA will continue to actively monitor all of its outstanding ratings and remains in constant dialogue with issuers and market participants.

Click here to view the report.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe Limited is located at 6-8 College Green, Dublin 2, Ireland.

Contacts

Analytical

Gopal Narsimhamurthy, Director
+1 (646) 731-3392
gnarsimhamurthy@kbra.com

Stevyn Schutzman, Managing Director
+1 (646) 731-2485
sschutzman@kbra.com

Pramit Sheth, Managing Director
+1 (646) 731-2330
psheth@kbra.com

William Cox, Global Head of Corporate, Financial, and Government Ratings
+1 (646) 731-2472
wcox@kbra.com

Van Hesser, Chief Strategist
+1 (646) 731-2305
vhesser@kbra.com

Business Development

Dana Bunting, Senior Managing Director
+1 (646) 731-2419
dbunting@kbra.com

Contacts

Analytical

Gopal Narsimhamurthy, Director
+1 (646) 731-3392
gnarsimhamurthy@kbra.com

Stevyn Schutzman, Managing Director
+1 (646) 731-2485
sschutzman@kbra.com

Pramit Sheth, Managing Director
+1 (646) 731-2330
psheth@kbra.com

William Cox, Global Head of Corporate, Financial, and Government Ratings
+1 (646) 731-2472
wcox@kbra.com

Van Hesser, Chief Strategist
+1 (646) 731-2305
vhesser@kbra.com

Business Development

Dana Bunting, Senior Managing Director
+1 (646) 731-2419
dbunting@kbra.com