Examine the articles reproduced below and consider how the five C's discussed in the course have application in the present coronavirus pandemic.

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"To the extent that an environment characterized by fits and starts of health safety confidence levels and ensuing passenger demand persists beyond 2021, the risk of more extensive industry disruption and a more protracted recovery period would escalate further," according to Russell Solomon, Moody's Associate Managing Director. For more research and insight on the coronavirus (COVID-19) outbreak, please see moodys.com/coronavirus. https://www.moodys.com/research/Moodys-Coronavirus-related-disruptions-to-airline-industry-affect- broad-swath--PBC 1237929 COVID-19 lowers airline credit ratings and raises the cost of debt Airlines Credit Rating Distribution % of rated airlines 60% 50% 40% 30% 20% 10% Before Covid-19 After Covid-19 0% Upper medium (A. A-) Lower medium (BBB+, BB8, BBB-) grade (BB+, BB. BB-) Non-investment Highly speculative Substantial risks/ (B+,B,B-) Extremely speculative (CCC+,CCC) Default or little prospect for recovery (CCC-, CC.C.D) Credit Rating Source: IATA Economics using data from Thomson Reuters Datastream https://www.iata.org/en/iata-repository/publications/economic-reports/covid-19-lowers-airline-credit- ratings-and-raises-the-cost-of-debt/ "To the extent that an environment characterized by fits and starts of health safety confidence levels and ensuing passenger demand persists beyond 2021, the risk of more extensive industry disruption and a more protracted recovery period would escalate further," according to Russell Solomon, Moody's Associate Managing Director. For more research and insight on the coronavirus (COVID-19) outbreak, please see moodys.com/coronavirus. https://www.moodys.com/research/Moodys-Coronavirus-related-disruptions-to-airline-industry-affect- broad-swath--PBC 1237929 COVID-19 lowers airline credit ratings and raises the cost of debt Airlines Credit Rating Distribution % of rated airlines 60% 50% 40% 30% 20% 10% Before Covid-19 After Covid-19 0% Upper medium (A. A-) Lower medium (BBB+, BB8, BBB-) grade (BB+, BB. BB-) Non-investment Highly speculative Substantial risks/ (B+,B,B-) Extremely speculative (CCC+,CCC) Default or little prospect for recovery (CCC-, CC.C.D) Credit Rating Source: IATA Economics using data from Thomson Reuters Datastream https://www.iata.org/en/iata-repository/publications/economic-reports/covid-19-lowers-airline-credit- ratings-and-raises-the-cost-of-debt/

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The five Cscharacter capacity collateral conditions and cooperationcan help analyze the impacts of the coronavirus pandemic on the airline industry Ch... View the full answer