The stimulus packages passed by the federal government to backstop an economy in free fall could provide some relief for the retail world, which has gone through an unprecedented disruption.
Moody’s analysts point out that tax changes in the CARES act could benefit large retailers, which gives them leeway to account for net operating losses, extends capital spending expensing and offers less restrictive rules on interest deductions. Meanwhile, a massive lending program through the Federal Reserve could provide relief as well for companies up to a certain size.
