Industry Investment Capability and COVID-19 Impact 2020-2021
To determine which industries are most and least likely to have investment capability in the next 12 months, in view of COVID-19's global impact. Research will help guide decision-making regarding commercial targets.
World Investment Report June 2020
S&P Global April 2020 Report
- S&P Global published its report "Industries Most and Least Impacted by COVID-19 from a Probability of Default Perspective – March 2020 Update" on April 7, 2020.
- The article calculated a one year probability of default (PD) using stock price movements and asset volatility to determine the most and least affected industries.
- According to S&P Global, the top 5 industries most impacted by COVID-19 are airlines, casinos and gaming, leisure facilities, auto parts and equipment, and oil and gas drilling.
- Airline businesses are affected by grounding of air traffic and border restrictions which have raised concerns about viability of several airline brands.
- Casino and gaming as well as leisure facilities have been impacted by the implementation of social distancing as well as postponement of sporting events including the Summer Olympics.
- While the auto parts and equipment industry has benefited from government stimulus packages, the oil and gas drilling industry suffered from low demand due to travel restrictions.
- On the other hand, the top 5 industries least affected by COVID-19 are property and casualty insurance, health care REITs, multi-line insurance, life and health insurance, and industrial REITs.
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