Credit Markets During the Pandemic

After the Gulf region overcame the COVID-19 pandemic, it is now time to mention how the fixed-income market and the loan market interacted with the region’s companies during the first half of 2020. How did the companies deal with the shortage of liquidity? And how were some of them able to enhance their cash coffers through revolving credit facilities?

Let us summarise the situation back then:

Gulf companies with low credit ratings were forced to borrow in local currencies through bank loans after international banks preferred those with higher credit ratings.Fixed income markets were closed to companies with lower ratings, and this led to a higher cost of financing.Companies that do not have a credit rating have realised that it is almost impos...