Virus to cause global recession: S&P

The sudden economic stop caused by coronavirus containment measures will cause a global recession this year and could result in US corporate default rates spiking above 10 per cent in the next 12 months, ratings agency S&P Global says.

"The sudden economic stop caused by COVID-19 containment measures will lead to a global recession this year," S&P said in a report on Tuesday.

A cash flow slump and much tighter financing conditions as well as the simultaneous oil price shock will hurt creditworthiness, it added.

"These factors will likely result in a surge in defaults, with a default rate on non-financial corporates in the US that may rise above 10 per cent and into the high single digits in Europe over the next 12 months."

Austrlaian Associated PressBack to Breaking News

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