The rapid spread of the novel coronavirus (COVID-19) globally is leading to shutdowns of automakers' plants, which consequently, is taking a toll on the entire supply chain. The three Brazil-based auto suppliers have global exposure and we expect their operations to suffer during second quarter with suspended productions across Europe and Americas. The automotive sector is facing an unprecedented hit that we expect will sharply reduce the demand for autos and their production globally. The pandemic crisis will result in a global economic crisis, which may be prolonged in developing countries such as Brazil. On March 31, 2020, S&P Global Ratings placed its ratings on Iochpe-Maxion S.A., Tupy S.A., and Randon S.A. Implementos E Participacoes on CreditWatch with negative implications.
