### Comment:
If company’s fundamentals are deteriorating due to a decrease in revenue/profits, and they were being mainly financed by debt before, they run a huge risk of downgrades. Downgraded rating would make it incredibly hard to finance using debt in the future as well

### REPLY:
Exactly and once new debt hits a stall of issuance, you run the problem of decreased supply of money, since the debt is being repaid and interest. Then all these companies have less to spend so others earn less. It’s a normal part of short and long term debt cycles 
  
 Rate cuts help give some time to prepare. Problem is companies clearly aren’t preparing for a deleveraging

### END.