By Joshua Franklin
NEW YORK (Reuters) – Corporate America is gearing up for leaner times.
From Exxon Mobil Corp (N:) to Royal Caribbean Cruises Ltd (N:), companies rushed to borrow more money and boost their cash coffers on Tuesday, as the market turmoil fueled by a plunge in oil prices and the global coronavirus outbreak raised the prospect of an economic downturn.
“It’s companies loading up on cash when you can get it. They are effectively building up that war chest,” said Jeremy Swan, managing principal at accounting and tax advisory firm CohnReznick LLP.
Royal Caribbean said on Tuesday it increased its credit capacity by $550 million to boost liquidity. The company’s stock plunged this month, amid concerns that the coronavirus outbreak would curtail travel.
“These are extraordinary times and we are taking these steps to manage the company prudently…