As the impact from the coronavirus pandemic spreads through the economy, a record number of companies are on watch for potentially becoming a "fallen angel," according to a report from S&P Global published on Thursday.
In finance, a "fallen angel" is a company that had its debt rating reduced to junk status due to a deteriorating financial position.
A lower credit rating means a higher interest rate is expected by investors, which in effect increases the cost for a company to raise cash via debt.
According to S&P Global, "The number of potential fallen angels has risen to a record 111 issuers globally, compared with 96 in our last report."
High-profile companies that had their debt ratings downgraded to junk prior to April include Ford, Macy's, Delta Air Lines, and Kraft Heinz.
Here are six "fallen angels" that had their debt ratings reduced to junk status in the month of April.
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