Interest rates and supply chain problems continue to drive credit risks

Moody’s Talks – Behind the Bonds

In this episode, we look into the two big drivers of credit quality for companies right now: interest rates and supply chains. Around the world, central banks have been raising interest rates in a bid to cool inflation. But higher interest rates can have a big effect on companies. Our study on US companies showed that rising rates will hit lower-rated companies particularly hard. Then, at 9:04 minutes, we examine the reasons for supply chain problems that have persisted since the covid pandemic’s peak. A combination of factors is making supply chain planning even more difficult right now. Inventory management, labor shortages and extreme weather events have become critical issues.

Guests: Jessica Gladstone, Associate Managing Director, and Mariarosa Verde, Senior Vice President, both of the Corporate Finance Group, Moody’s Investors Service.

Host: Tania Hall, Vice President - Senior Research Writer, MIS Research, Moody’s Investors Service.

To read more on this topic, visit The Credit Cycle Turns page on Moodys.com (some content only available to registered users or subscribers).