OREANDA-NEWS. The international rating agency Moody’s expects an increase in the default rate of companies in 2020 to 10.6%. In March of this year, the figure was 3.5%. This is stated in the press service of the company.

"According to the basic forecast of Moody's Investors Service, by the end of 2020, the global default rate of companies will be 10.6% and by the end of March 2021 it will increase to 11.3% against 3.5% in March 2020", the statement said. In a pessimistic scenario, the agency expects company defaults to rise to 16.3% by the end of March 2021.

The agency notes that they base the forecast on the expectations of a recession in many large economies due to the spread of coronavirus, a drop in oil prices to $ 20 and a sharp decline in the value of assets in the financial markets. According to the agency, in March 13 companies defaulted compared to 11 companies in February. Mostly in March, companies from the oil and gas and metallurgical and mining industries went bankrupt.