Resources

Property development represents about 30% of China’s GDP. Ongoing defaults could eventually convert into bankruptcy filings that would shake up the industry - and subsequently rock markets in the West.

The median U.S. supplier has reduced capital expenditures into property, plant, and equipment and has increased their total debt-to-asset burden in the last two years. Such action creates pitfalls in supply chains, especially in the age of COVID-19.

Deep cracks are surfacing in global corporate debt markets. The timing of corporate bankruptcies is always difficult to predict, yet FRISK® score trends show that the odds of a bankruptcy wave have measurably increased.

The harsh downturn in several end markets has resulted in overcapacity in key industrial commodity markets, causing base metal prices to break materially lower. We note where bankruptcy is most probable.

Amazon’s push into the prescription delivery market along with COVID-19 have had varying impacts on retail pharmacies. For merchandise vendors selling to Rite Aid Corporation, now is the time to evaluate risk exposure.

Supplier financial risk in China calls for increased scrutiny. Now is the time to proactively leverage tools like the FRISK® score to conduct objective audits of your prospective and existing suppliers as supply chains restructure.

Ferrellgas Partners, L.P. is a good example of what to look for as a financial counterparty spirals toward bankruptcy, seeking out court protections.

The FRISK® score downgraded retailers and restaurants in February and March following the market sell-off stemming from coronavirus.

Based on Neiman Marcus Group LTD LLC’s bottom-rung FRISK® score of “1,” trade creditors must perform deep financial analysis and take extra care when dealing with the company.