| The global commodity downturn is exceptionally severe in its depth and breadth and is expected to be a substantial factor driving the number of defaults higher on a global basis in 2016, says Moody's Investors Service. "Commodity sectors are facing staggering adverse conditions driven by a potent mix of slower-than-expected global demand and excess supply," said Mariarosa Verde, a Moody's Group Credit Officer and lead author of the report.
Collapsing commodity prices have placed a significant strain on credit quality in the oil and gas and metals and mining sectors. These sectors have accounted for a disproportionately large 36% of downgrades and 48% of defaults among all corporates globally so far this year. Moody's anticipates continued credit deterioration and a spike in defaults in these sectors in 2016, according to the report, "Growing Stress in Commodity Sectors is a Credit Hazard for 2016." (Press Release)..............................................Full Article: Source
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