High-yield bonds issued in the metals and mining sector provide weak covenant protection, Moody’s Investors Service says in a new report issued on Friday.
The average covenant quality (CQ) score for the 56 North American metals and mining companies with outstanding high-yield bonds, drawn from Moody’s high-yield covenant database since 2011 that are still outstanding as of March 31, is 3.97 under the credit rating agency’s scoring criteria.
