Egan-Jones Highlights Key Shifts in Credit Quality in New Analysis

NEW YORK--(BUSINESS WIRE)--In its latest commentary, Egan-Jones reviews major developments emerging across auto, retail, online platforms, crypto, and labor.

The commentary states that significant changes in credit quality are unfolding and aims to assist sophisticated institutional investors and risk managers in identifying these shifts. It opens by noting that the bankruptcy of First Brands and Tricolor reflects concerns expressed in recent years about overcapacity and efficiency gaps in the automobile industry. The commentary cites industry capacity increasing by at least 20 percent with the entrance of Chinese manufacturers and highlights that Tesla produces vehicles in 10 hours compared to VW’s 30 hours, with fewer workers required.

In retail, the commentary presents a comparison of Walmart’s and Amazon’s total annual revenues and comments that a technology-infused distributor is in the process of hollowing out the retail leader of the past four decades. It further suggests that the advantages of tech-based retailers may continue to grow and could drive ongoing shifts in the retail landscape.

On labor trends, the commentary highlights that recent college graduates face difficulties securing suitable employment and that educational indebtedness is greater than before. It suggests a long-term trend where delayed careers and prolonged dependence risk becoming the norm.

Egan-Jones encourages institutional investors to be aware of the broader context of the massively shifting environment and notes that changes observed in recent months are likely to continue.

About Egan-Jones Ratings Company

Egan-Jones Ratings Company was founded in 1995 for the purpose of issuing timely, accurate ratings. The firm rapidly gained credibility by flagging the failures of Enron and WorldCom, and has since established itself as a leading global provider of credit ratings. Egan-Jones is a Nationally Recognized Statistical Rating Organization (NRSRO) and is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider. Egan-Jones Proxy Services is a leading proxy advisor, offering investors vote guidance, vote execution, and reporting.