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Bloomberg
Moody’s Investors Service is taking aim at airlines, placing multiple carriers on review for downgrades as the industry faces the sharpest downturn since at least the 9/11 terrorist attacks.
Moody said in a statement that it’s considering cutting Delta Air Lines Inc to junk.
The carrier currently has a Baa3 rating, the lowest investment-grade rank. The ratings company cited concerns that the virus will significantly curtail domestic and global demand for air travel through at least June.
“The rapid and widening spread of the coronavirus outbreak, the deteriorating global economic outlook, falling oil prices and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets,†analyst Jonathan Root wrote in a report.