Answered By: Leslie Burmeister
Last Updated: Jan 20, 2023     Views: 8

Q.
Distressed companies

How can I identify companies in distress?


A.

Capital IQ:

Screen for companies based on debt service coverage and credit rating

  • Go to Screening and click Idea Generation
  • Type distress into the search bar
  • Select the screening named "Distressed Companies -- Choose Threshold and Geography"
  • Add in the thresholds related to debt service coverage and credit ratings
  • Adjust geography as desired
  • Click View Results
  • Export results to Excel

Screen for companies based on red flag key developments (credit downgrades, legal/regulatory issues, index constituency drops, etc):

  • Go to Screening and click Idea Generation
  • Type distress into the search bar
  • Select the screening named "Recent Potential Red Flags or Distress Indicators"
  • Adjust time frame as desired (defaults to past 30 days)
  • Adjust geography as desired
  • Click View Results
  • Export results to Excel