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

"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/