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2001 Ratings Outlook for Finance Companies: An Industry in Transition Mar 01
Standard & Poors, March 2001
Abstract
The year 2000, characterized by flux and transition, was certainly a trying period for the finance company sector. Many companies exhibited a great deal of stress, testing the endurance of some companies with liquidity problems. Other companies continued to perform well, but in a relatively strong U.S. economy. The capital markets, both equity and debt, were most unforgiving to all companies. Credit spreads widened across the board and were exceptionally volatile, overreacting to even the slightest piece of bad news. The resulting funding environment was difficult even for the 'A' senior debt and 'A-1' CP-rated finance companies, let alone the 'BBB' senior debt and 'A-2' CP issuers, which found it too expensive to seek funding. Some companies, like Associates First...
Companies mentioned in this report are: Washington Mutual Finance Corp.,CIT Group Inc.,Comdisco Inc.,Springleaf Finance Corp.,Wells Fargo Financial Inc.,Heller Financial Inc.,Citigroup Inc.,Bombardier Capital Inc.,ORIX Corp.,GATX Capital Corp.,ORIX Financial Services Inc.,Associates First Capital Corp.,Providian Financial Corp.,Metris Cos., Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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