This comes even as corporates battle challenges with economies starting to reopen after prolonged lockdowns aimed at curbing the spread of covid-19
Corporates worldwide are expected to incur a revenue loss of more than $5 trillion in 2020, compared to the $26 trillion of revenue reported in 2019, according to Fitch Ratings.
This comes even as corporates battle challenges with economies starting to reopen after prolonged lockdowns aimed at curbing the spread of covid-19.
The revenue losses may extend to more than $8.5 trillion by end-2021, the rating agency said. “This estimate only covers our corporate-rated portfolio, which in turn represents $14 trillion of the estimated $74 trillion corporate debt globally," it said.
The oil and gas sector is expected to have the biggest share of revenue losses in dollar terms, representing 40% of the aggregate decline. “The critical and expensive nature of oil and gas extraction means that this sector dominates our lost-revenue projections, accounting for $1.8 trillion of lost revenue globally in 2020. This is six times greater than the impact on the more visibly affected retail sector," it said.
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