The credit strength of companies shouldn’t be impacted if they’re forced to restate their financials because of the way they accounted for warrants in a SPAC transaction, CFO Dive reports, citing a Moody’s analysis.
Because it’s only an accounting issue that’s causing the restatement and not a breakdown in process or internal controls, there’s no credit impact that would necessarily concern investors, according to the Moody’s Investors Services sector comment.
The restatements, Moody’s says, “provide little value to credit analysis and are only marginally credit negative.” Read more.
