Negative outlook for Formula 1
Negative outlook for Formula 1
Formula 1's outlook has been downgraded to negative from positive by one of the world's leading credit rating agencies.
The move has been made by American company Moody's, that assesses the long-term and short-term ratings related to the relative credit risks of numerous global businesses, and comes in light of the ongoing coronavirus pandemic that has resulted in F1 failing to stage a grand prix this season.
With the Australian and Monaco GPs cancelled, six others postponed and the near-certainty others will follow, Moody's has declared in a statement that the impact being felt by the sport would result in “weakened earnings and cash flow generation, higher leverage and liquidity erosion in 2020”.
It added in a statement that the switch to a negative outlook was as a result of "the high levels of uncertainty over the 2020 race season and Moody’s expectations of increased leverage and weakened liquidity in 2020".
Moody's, however, believes F1, run by Liberty Media, remains in a strong enough position to weather the possible storm of it being forced to cancel the entire season.
The statement added: “Formula One has strong liquidity and a sufficiently flexible cost base to manage through a severely curtailed 2020 season, which Moody’s consider would likely be able to support a full cancellation.
“As of 31 December 2019, Formula One had substantial liquidity headroom of around $900 million, comprising $400 million cash balance and $500 million undrawn committed revolving credit facility.
“Moody’s expects this to be sufficient to absorb cash outflows from potential refunds of advance payments from promoters, sponsors and broadcasters, team payments, other overheads and interest costs in the event that the 2020 season is cancelled.”
Related
Change your timezone:
Latest News
Newey set for CRUCIAL meeting over Red Bull future
- 40 minutes ago
F1 News Today: ‘Absolute b******s’ Newey claims slammed as Norris INJURED while partying
- 3 hours ago
Hamilton hit with SURPRISE Ferrari claim as new Cullen relationship blossoms - GPFans F1 Recap
- Yesterday 23:57
Current F1 star qualifies for world championship race on two wheels
- Yesterday 22:57
Ricciardo given HUGE boost after upgrade claim
- Yesterday 21:57
‘Absolute b******s’ - Newey’s wife SLAMS Red Bull F1 claims
- Yesterday 20:57
Related news
F1 reveals viewing figure drop for European based 2020 season
Pirelli boss hails "miracle" despite "nightmare" 2020
Survival the only positive for Haas from dismal 2020 - Steiner
Ricciardo reveals internal pressure for podiums during time with Renault
F1 Standings
Drivers
- Oliver Bearman
- Charles Leclerc
- Carlos Sainz
- Lando Norris
- Oscar Piastri
- Pierre Gasly
- Esteban Ocon
- Sergio Pérez
- Max Verstappen
- Alexander Albon
- Logan Sargeant
- Lewis Hamilton
- George Russell
- Nico Hülkenberg
- Kevin Magnussen
- Fernando Alonso
- Lance Stroll
- Valtteri Bottas
- Zhou Guanyu
- Daniel Ricciardo
- Yuki Tsunoda
Races
- Gulf Air Grand Prix of Bahrain 2024
- Saudi Arabian Grand Prix 2024
- Grand Prix of Australia 2024
- MSC Cruises Grand Prix of Japan 2024
- Grand Prix of China 2024
- Miami Grand Prix 2024
- Gran Premio dell'Emilia Romagna 2024
- Grand Prix of Monaco 2024
- Grand Prix du Canada 2024
- Gran Premio de España 2024
- Grand Prix of Austria 2024
- Grand Prix of Great Britain 2024
- Grand Prix of Hungary 2024
- Grand Prix of Belgium 2024
- Heineken Dutch Grand Prix 2024
- Grand Prix of Italy 2024
- Grand Prix of Azerbaijan 2024
- Grand Prix of Singapore 2024
- Grand Prix of the United States 2024
- Gran Premio de la Ciudad de Mexico 2024
- Grande Prêmio de São Paulo 2024
- Heineken Silver Las Vegas Grand Prix 2024
- Qatar Grand Prix 2024
- Grand Prix of Abu Dhabi 2024
About GPFans
GPFans is a multi-platform, multi-language brand dedicated to Formula One coverage. We bring you all the ins and outs of the sport, 24/7, everything from up-to-the-minute news and features to the latest viral stories and clips.We believe that a new generation of exciting, outspoken drivers will make F1 more popular than ever before, and we want to give our users access to as much of their heroes as possible, on and off the track. From Lewis Hamilton to Max Verstappen, Daniel Ricciardo to Sebastian Vettel, we provide in-depth analysis of every every Grand Prix in the season, from Australia to Abu Dhabi.
With Formula One under the new ownership of Liberty Media, how the sport is being covered is evolving, and GPFans will look to be at the heart of this progression into new media, as one of the fastest-growing sites covering the king of motorsports.
Follow us on your favorite social media channel
Corporate & Media
Innovatieweg 20C7007 CD, Doetinchem, Netherlands
+31645516860