Zeroing in on Supply Chain Credit Risk: Analyzing COVID-19 Credit Risk with Supply Chain Data

Despite easing COVID-19 restrictions across the globe, supply chains have struggled to return to pre-pandemic levels and are now facing pressures from changes in consumption patterns, surging demand for goods, shortages of workers, and pre-existing political pressures.

This report deep dives into industries impacted by supply chain disruptions and provides insight into unrated corporate credit risk and supply chains.

Key takeaways:

• Consumer discretionary industries showed the largest market signal impact on the PD, with the main disruption being led by apparel, consumer electronics and household appliances.
• Company's resilience to supply chain and demand pressures will be strongly influenced by whether it is speculative or investment grade. (Note: a separate analysis showed that a minimum of 55% of companies across sectors globally have a credit score below ‘b+’.)
• Using supply chain data and RiskGauge to combine market-based early warning signals and fundamental credit analysis can reveal the most critical and vulnerable parts of the supply chain.