WBS: Restaurants, fitness clubs dominate whole business securitizations
admin | April 3, 2020
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Right behind hotels, restaurants and fitness clubs experienced the fastest shut downs due to COVID-19, and those businesses comprise a majority of whole business securitization transactions. The WBS segment is likely to come under ratings pressure with dine-in restaurants first to experience the impact. Restaurants located in transportation hubs such as airports and train stations, those in enclosed malls and conference centers are also among those at the most risk due to the dramatic decline in traffic and outright closures. Budget priced fitness clubs such as Planet Fitness are likely to be better positioned to ride out the pandemic, according to WBS analysts. Sectors unlikely to experience pronounced stress include automotive services and reconstruction and cleaning service businesses. The S&P report is here. Sources: S&P, APS
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