Bangkok--16 Oct--Standard & Poor's
Standard & Poor's Global Fixed Income Research Group estimates that over the next five quarters, U.S. financial and nonfinancial firms will face $794 billion in debt maturities, according to an article published today. The article, which is titled "Refinancing Amid The Credit Crunch," says that firms will potentially need to refinance this debt amid a daunting financial landscape. This estimate is based on bond, notes, and bank debt.
"In normal times, this would be business as usual, but the credit freeze has made it difficult for firms, especially in the speculative-grade space, to tap markets," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Firms that can access the bond or loan market are not going to like what they see, as bond and loan spreads in the secondary market are at all-time highs for the series tracked by Standard and Poor's Global Fixed Income Research and Standard & Poor's LCD group."
Throughout the corporate landscape, firms will expect to pay more to roll-over mid- and long-term debt in coming quarters. For risky credits, maturities might be a potential default trigger until credit markets recover. Luckily, the maturity schedule is relatively light for speculative-grade firms through 2010 and should not be a significant source of default pressure.
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Media Contact:
Mimi Barker, New York (1) 212-438-5054, [email protected]
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760