18 Mar Metals and mining moderately exposed to COVID-19 outbreak: Moody’s report
The global metals and mining sector will be ‘moderately exposed’ to the effects of the ongoing COVID-19 (coronavirus) outbreak, according to a latest global sectors report by Moody’s.
The US-based financial services company cautioned that the global spread of coronavirus will significantly slow economic growth, impacting sectors with varying severity based on each’s level of exposure.
“A large number of sectors will be moderately exposed globally, often because of the secondary effects of the outbreak and in some cases trade in global commodities,” Moody’s wrote. “This applies in particular to the Oil & Gas and Metals & Mining sectors, which will suffer as a result of the fall in commodity prices.”
However, analysts at Moody’s believe many producers have become more robust since the last commodity prices slump of 2015-16, which ravaged smaller, less-diversified mining companies. Now, more global, higher-rated companies are better able to withstand a market downturn, according to Moody’s.
The firm cut its GDP growth forecast for the advanced G-20 economies to 1.0% in 2020, down from 1.7% in 2019, and revised its forecast for the emerging G-20 to 3.8% in 2020, down from 4.2% in 2019, including a substantive slowdown in China.