Moody's: Transportation sector at risk in extended coronavirus outbreak

Portofla.New

Lower container volumes could further weigh on the intermodal business of North American railroads, as the transportation sector faces increasing pressure due to the coronavirus outbreak, according to a new report by Moody's Investors Service.

Transportation companies, including freight railroads, would need to contend with lower demand as supply chains are disrupted and economic activity slows, according to the report, which was issued last week.

"As the coronavirus spreads to more countries, the likelihood of longer-lasting economic and financial effects has increased, the impact of which may weigh on the North American transportation sector's financial and credit profile," said Rene Lipsch, a Moody's vice president and senior credit officer, in a press release.