Most industries are rebounding now from the economic turmoil unleashed a year ago by the COVID-19 pandemic, as witnessed by diminished credit default risks, according to S&P Global Market Intelligence's Market Signals probability of default model. In 2021, businesses appear to have more access to cash, decreased competition and more attention from consumers than a year ago. Financial analysts say that the companies faring the best with regards to default risk largely pivoted any brick-and-mortar business to online platforms. "Companies are obviously challenged and are looking to work through reinvigorating the topline," Joe McCormack, a Third Bridge Group Ltd. senior analyst, told S&P. "There still seems to be ample room for them to work through as it's, for the most part, a slow kind of drag on revenues." The slideshow above illustrates the median market probability of U.S. business sector default risk after one year, according to S&P Global Market Intelligence. Analysts say that government stimulus money in the U.S. is most likely to benefit large online retailers such as Amazon.com and Walmart.com as well as those that specialize in outdoor goods and home improvement. The prognosis is rockier in the communications services sector, where companies such as AMC Entertainment Holdings Inc. now have relatively high default risk. Other major players, such as Verizon Communications, are heavily indebted, and several big fish in the sector, like Frontier Communications Corp., have filed for bankruptcy. Default risk represents the likelihood that a borrower will be unable to repay debt and is, therefore, one indicator of financial fitness. Keep reading...

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