Corporate Finance 2021 year-end review and 2022 outlook

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TORONTO, February 04, 2022–(BUSINESS WIRE)–This commentary summarizes and reviews DBRS Morningstar’s corporate finance ratings activity in 2021 to provide an overview of key trends and their potential impact on ratings activity in 2022, including a sector-by-sector overview. Heading into 2021, DBRS Morningstar expected its downgrade-to-outgrade ratio to moderate from 2020, but remain above the historical 15-year moving average of approximately 3.00 times, based on continued uncertainty related to the coronavirus disease (COVID-19) pandemic, vaccine deployment/effectiveness, structural trends and subsequent macroeconomic conditions. Although we have been cautious and bracing for prolonged stress into 2021, the second year of the pandemic has been more positive than our initial expectations, as vaccine approvals and deployments, economic reopenings, continued of massive fiscal and monetary support and stimulus, and business agility and adaptability had a more positive impact on credit risk profiles than we had anticipated.

“Going forward, the vast majority of trends that are currently stable reflect DBRS Morningstar’s view that companies are indeed moving toward post-pandemic normalcy,” said Anil Passi, Managing Director of Credit Ratings, Global Corporates at DBRS. Morningstar. “Revenue profiles have shown recovery or stabilization following economic reopenings, increased economic mobility and activity, and business adaptation and innovation amid structural trends. which have emerged or accelerated in 2020 and 2021. Therefore, based on the current economic outlook, DBRS Morningstar is confident that business risk assessments and corresponding key credit metrics should remain stable and continue to transform stable trends in confirmations in 2022.”

To read the full report, click here: https://www.dbrsmorningstar.com/research/391903/corporate-finance-2021-year-end-review-and-2022-outlook

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