Mattel Inc (MAT): Hot Wheels on the highway to hell after recalls, whistleblowing?August 15, 2019
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A whistleblower letter halted a Mattel bond sale meant to refinance $250 million in debt, causing a plunge in its stock price. ESG signals indicated poor performance for the company versus peers before this most recent event.
- Mattel had multiple recalls in the past year, including 4.7 million sleepers recalled after more than 30 infants died over a decade
- Spotlight Events, which are detected as key events by Truvalue’s algorithms, flagged the recall within the category of Product quality & safety
- Mattel’s poor ESG performance and coinciding spike in CDS prices aligns with recent research that finds a connection between ESG performance and credit risk
- That study published in July by Wharton researchers used Truvalue Labs material ESG data, correlating it with credit risk
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