Corporate Credit Ratings

The ratings firm said failure to raise the debt limit would erode U.S. creditworthiness. The ratings firm said failure to raise the debt limit would erode U.S. creditworthiness. FOLLOW US ON GOOGLE NEWS Read original article here Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do…

The prospects of U.S. companies with significant leverage or rated several notches below investment grade have turned bleaker in recent months, credit-rating firms say, and default rates for junk-rated companies could more than double by early next year. While highly rated companies are proving largely resilient during the postpandemic economic turbulence, businesses with lower credit ratings and floating-rate debt are increasingly struggling with steep increases to debt-servicing costs and a possible recession as the…

Intel Corp. INTC 2.87% Chief Executive Pat Gelsinger and other managers are taking pay cuts, days after the chip maker posted quarterly earnings that disappointed Wall Street and spurred a downgrade in the company’s credit rating. Mr. Gelsinger, in the top job for two years, will see his base pay reduced 25%, Intel said. Other cuts will be staggered, the company said, with base-pay hits of 15% for members…

PG&E Corp.’s PCG 0.78% ambitious plan to reduce wildfire risk will cost tens of billions of dollars. It isn’t exactly clear how it is going to pay for it.The utility company, which provides electricity and natural gas to about 16 million people in Northern California, is limited in its ability to raise debt and equity following a complex bankruptcy restructuring that required it to issue record amounts of each. Now, it is seeking alternative ways to fund its…

After powerful storms wreaked havoc on America’s utility system in recent years, bills to cover recovery costs are coming due for customers.Electric and gas utilities are increasingly turning to lower-interest, ratepayer-backed bonds to finance mounting investments to fix and bolster their systems or cover extraordinary energy costs following hurricanes, wildfires and winter freezes. Customers are on the hook for repaying the loans, and the payback period could stretch for as long as 30 years. In the past year, around…

Carvana Co. CVNA -3.13% , the used-car dealer that was a pandemic winner, is rushing to conserve cash as once-plentiful financing options dry up and business deteriorates.On Friday, Carvana laid off about 1,500 people, its second round in six months. Its weakening finances mean raising funds would be difficult and costly, and it could run out of cash in a year, analysts say. Few companies have been hit harder by rising interest rates than Carvana. The company’s interest…

Executives at some companies in retail and other consumer-focused industries are racing to assess their capital needs and business plans amid the sharp drop in the British pound over the past year, recent market volatility and rising interest rates.The pound, which has done a round-trip in recent days after the U.K. government said it would cut taxes before partly reversing course Monday, remains down about 17% from a year earlier at around $1.13 versus the dollar, pressuring companies that have to pay more for their…

LONDON—S&P Global Ratings lowered its outlook on U.K. sovereign debt on Friday, citing risks to the country’s economy stemming from the government’s recently announced tax-cutting plans.  The ratings company revised its outlook to negative from stable, saying the “measures could weaken the U.K.’s fiscal position” because they might raise government borrowing costs and make it harder for the country to tame inflation. At the same time, S&P affirmed the U.K.’s double-A credit…

Home-price growth decelerated in July as buyer demand fell due to higher mortgage rates. The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 15.8% in the year that ended in July, down from an 18.1% annual rate the prior month. The index fell 0.3% in July from June, the first month-over-month decline since January 2019. Existing-home sales have fallen for seven…

Cheniere Energy Inc.’s finance chief is working toward landing an investment-grade credit rating in the coming year, as the largest U.S. exporter of liquefied natural gas pays down debt and benefits from the run-up in energy prices.Houston-based Cheniere this year amplified its capacity with a new production line completed ahead of schedule, while also managing to raise production at existing facilities, said Zach Davis, the chief financial officer. That…