The response by governments worldwide to stop the spread of the novel coronavirus has created unprecedented uncertainty in the restaurant industry. Restrictions are coming into place around the world that require restaurants to close or switch to carryout only. France, Italy, and Spain announced closures over the weekend, and several states (California, Ohio, Illinois, and others) followed suit soon thereafter (though carryout may still be offered). At this point, it would be unsurprising to see similar restrictions imposed more broadly across the U.S., potentially even in a matter of days or weeks. Even without mandatory closures, restaurant traffic will likely plummet due to social distancing recommendations made by the government. On Monday, President Trump issued guidance that people should avoid groups of 10 or more.

The coronavirus pandemic has sapped demand for gasoline and jet fuel as more people worldwide are told to stay home and avoid non-essential travel.  It's hard to say how long these restrictions will remain in place, but they have created a cloud of uncertainty over refineries, which primarily process crude oil into conventional and premium gasolines, diesel, jet fuel, and other products.

Ventas (VTR) has paid uninterrupted dividends for twenty years, including during the 2007-2009 financial crisis, a time which tested the financial strength of most businesses and forced one-third of dividend-paying S&P 500 companies to cut their payouts. However, Ventas is now facing an unprecedented and unforeseen risk: that the REIT's already weak-performing senior living portfolio, which accounted for 53% of net operating income in 2019, may be impacted by the emerging coronavirus and the virus' ramifications on the senior housing market.

BP (BP) has the most delicate balance sheet of any of the oil majors, and its leverage finished 2019 above the high end of management's target range. Following last week's unexpected plunge in oil prices, which we believe has potential to keep oil near $35 per barrel or lower (below the firm's breakeven point) for the foreseeable future, BP's lack of balance sheet capacity puts greater pressure on its dividend. Therefore, we are downgrading BP's Dividend Safety Score from Borderline Safeto Unsafe. The chart below shows BP's gearing ratio, which divides the firm's net debt by its net debt plus equity to show how much of its financing comes from debt. Companies with lower gearing can afford to add more debt to their balance [...]