We recently announced a forthcoming update to our models to improve the discount rate for capitalizing operating lease payments. Details on this change are here.

Rating Changes Caused by Updating the Operating Lease Obligation Discount Rate

Based on today’s models, no actively-traded stocks will be impacted by this update. The following inactive stocks will see their rating change as a direct result of this update. Learn more about the inactive stocks we cover here.

Figure 1: Rating Changes After Updating the Operating Lease Obligation Discount Rate

Sources: New Constructs, LLC and company filings.

When You Will See the Change: Thursday, July 30

This update will go into effect on our site the morning of Thursday, July 30. Affected companies will be marked with the Analyst Note “Updated Operating Lease Discount Rate.”

This article originally published on July 23, 2020.

Disclosure: David Trainer, Kyle Guske II, and Matt Shuler receive no compensation to write about any specific stock, style, or theme.

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