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Investing

New Moody’s Company “Dead Pool” May Wreck A Lot Of Companies

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By Douglas A. McIntyre Updated Published
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Moody’s has come out with a list of 283 companies that are at great risk of defaulting on their debt. The Wall Street Journal got a copy of the list so each of the firms can face customers, suppliers, and creditors who will have fresh questions about whether these corporations will fail.

Because they are on a list from Moody’s published by The Wall Street Journal, their fates may be sealed even though they might not have been if the list never saw the light of day.

Many of the firms on the “Bottom Rung” list, as Moody’s calls it, are clearly beyond help.  Chrysler and Rite Aid (RAD) probably fall into that category. But, some of the other firms whose names made the honor roll are likely to pull through the downturn. Of course, Moody’s has made that a bit less likely.

AMR (AMR), which is in the “Bottom Rung” has a relatively strong balance sheet. With fuel costs down, even a drop in passengers is not likely to put the company into Chapter 11. The same can probably be said for Level 3 (LVLT) and AMD (AMD). Being on the “Bottom Rung” has moved these companies into hot water.

Douglas A. McIntyre

Contact [email protected] for any questions or corrections.

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This compensation and any current or future ownership interest could create a conflict of interest. Please consider this disclosure alongside EnergyX's offering materials. EnergyX's Regulation A offering has been qualified by the SEC. Offers and sales may be made only by means of the qualified offering circular. Before investing, carefully review the offering circular, including the risk factors. The offering circular is available at invest.energyx.com/.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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