Examine the articles reproduced below and consider how the five C's discussed in the course have application in the present coronavirus pandemic. Research Announcement: Moody's - Coronavirus-related disruptions to airline industry affect broad swath of global economy New York, July 16, 2020 Airlines saw demand drop by more than 90% within weeks of the onset of the pandemic Passenger demand for air travel drives demand for key stakeholders in the aviation industry, particularly airport operators, aircraft leasing companies and aircraft manufacturers The global airline industry has been disproportionately affected by the coronavirus pandemic, and the strain on its once flourishing fundamentals will affect a broad swath of the world economy well into 2022 and beyond, given the importance of passenger airlines to global economic activity, Moody's Investors Service says in a new report published today. The industry is one of just a few that saw demand drop by more than 90% within weeks of the onset of the crisis. According to Moody's, while air travel itself is a key facilitator of tourism spending, the outsourcing by airlines of many services, along with its significant employment rolls and consumption of refined petroleum in normal economic times, similarly supports economic activity across many sectors. "Passenger demand for air travel drives demand for key stakeholders in the aviation industry, including airport operators, aircraft leasing companies and aircraft manufacturers, as well as a multitude of service providers that keep airlines and airports running," said Moody's Senior Vice President Jonathan Root. "We expect that each of these stakeholders will be significantly impacted for at least the next three years, with 2020 declines for their products and services anticipated to be in the 40% to 50% range, if not higher." Moody's says that as passenger traffic eventually improves, airports will recover along with the airlines, followed by aircraft lessors and then the aircraft manufacturers. The broad base of global suppliers that feed the aircraft manufacturers will be the last of the direct aviation industry stakeholders to regain their footing, but not before 2023, according to Moody's. In terms of demand recovery, Moody's analysts' models anticipate a recovery in passenger demand close to 2019 levels by the end of 2023, once the concerns related to personal health and safety are relieved. However, the rating agency cautions that with the recent increasing rates of infections in the US that followed loosening of social distancing and quarantine protocols, passenger demand may ultimately align with its slower recovery case, or worse, if governments enforce social distancing and reinstate quarantine protocols because of the recent increasing infection rates. "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 Before Cavid-19 After Covid-19 of redes 50% 30% 10% Upper medium Lower medium Non-investment Highly speculative Substantial risks Default or little . -) 08.000.000 grade (3.6-) Extremely prospect for (B8, BB.BB-) speculative recovery ICCCCCC ICCCCC.C. Credit Rating Source: IATA Economising data from Thomson Reuters Dacram https://www.iata.org/en/iata-repository/publications/economic-reports/covid-19-lowers-airline-credit- ratings-and-raises-the-cost-of-debt/ Examine the articles reproduced below and consider how the five C's discussed in the course have application in the present coronavirus pandemic. Research Announcement: Moody's - Coronavirus-related disruptions to airline industry affect broad swath of global economy New York, July 16, 2020 Airlines saw demand drop by more than 90% within weeks of the onset of the pandemic Passenger demand for air travel drives demand for key stakeholders in the aviation industry, particularly airport operators, aircraft leasing companies and aircraft manufacturers The global airline industry has been disproportionately affected by the coronavirus pandemic, and the strain on its once flourishing fundamentals will affect a broad swath of the world economy well into 2022 and beyond, given the importance of passenger airlines to global economic activity, Moody's Investors Service says in a new report published today. The industry is one of just a few that saw demand drop by more than 90% within weeks of the onset of the crisis. According to Moody's, while air travel itself is a key facilitator of tourism spending, the outsourcing by airlines of many services, along with its significant employment rolls and consumption of refined petroleum in normal economic times, similarly supports economic activity across many sectors. "Passenger demand for air travel drives demand for key stakeholders in the aviation industry, including airport operators, aircraft leasing companies and aircraft manufacturers, as well as a multitude of service providers that keep airlines and airports running," said Moody's Senior Vice President Jonathan Root. "We expect that each of these stakeholders will be significantly impacted for at least the next three years, with 2020 declines for their products and services anticipated to be in the 40% to 50% range, if not higher." Moody's says that as passenger traffic eventually improves, airports will recover along with the airlines, followed by aircraft lessors and then the aircraft manufacturers. The broad base of global suppliers that feed the aircraft manufacturers will be the last of the direct aviation industry stakeholders to regain their footing, but not before 2023, according to Moody's. In terms of demand recovery, Moody's analysts' models anticipate a recovery in passenger demand close to 2019 levels by the end of 2023, once the concerns related to personal health and safety are relieved. However, the rating agency cautions that with the recent increasing rates of infections in the US that followed loosening of social distancing and quarantine protocols, passenger demand may ultimately align with its slower recovery case, or worse, if governments enforce social distancing and reinstate quarantine protocols because of the recent increasing infection rates. "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 Before Cavid-19 After Covid-19 of redes 50% 30% 10% Upper medium Lower medium Non-investment Highly speculative Substantial risks Default or little . -) 08.000.000 grade (3.6-) Extremely prospect for (B8, BB.BB-) speculative recovery ICCCCCC ICCCCC.C. Credit Rating Source: IATA Economising data from Thomson Reuters Dacram https://www.iata.org/en/iata-repository/publications/economic-reports/covid-19-lowers-airline-credit- ratings-and-raises-the-cost-of-debt/