Bangkok--17 Jun--Standard & Poor's
Standard & Poor's Ratings Services believes that with the more than $1.7 trillion in bonds and loans maturing in 2011 to 2014, some companies at the low end of the ratings scale may find it difficult to refinance at the rates they'll need for long-term survival--if they can find financing at all, according to a special report to be published in the June 23, 2010 edition of CreditWeek.
The total debt coming due for rated U.S. borrowers will climb steadily through the next four years, peaking at more than $550 billion in 2014, after what we view as more manageable levels through the end of next year. More importantly, as this wave of refinancing surges, Standard & Poor's expects the proportion of debt in the speculative-grade category ('BB+' and lower) will continue to grow.
"We believe that many borrowers at the low end of the ratings scale will encounter serious hurdles to their refinancing needs in 2013 and 2014," said Standard & Poor's Managing Director John Bilardello. "Unlike investment-grade entities, for which the main issue is the rising cost of capital, speculative-grade borrowers may find that financial institutions and investors are wary of lending to them."
The articles in the special report, titled "Corporate Refinancings: The Trillion Dollar Question," will appear in the June 23 edition of Standard & Poor's CreditWeek and will be published on Standard & Poor's electronic product, RatingsDirect, in the coming days. Several articles in the special report are already available on RatingsDirect, including the lead, titled "Wave Of Debt Coming Due May Wash Away Some U.S. Speculative-Grade Borrowers."
All of the articles in the special report will be available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase copies of these reports by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request copies of these reports by contacting the media representatives provided.
Media Contact:
David Wargin, New York (1) 212.438.1579,
[email protected]
Analyst Contacts:
John J Bilardello, New York (1) 212-438-7664
David Wargin, New York (1) 212-438-1579
Mimi Barker, New York (1) 212-438-5054
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_
[email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]