Mattel Inc

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
Industry
Toys and Sporting Goods

Material Categories
Product Quality and Safety
Supply Chain Management