Moody's Investors Service on Tuesday said that the refinancing burden of unrated European leveraged buyouts remains challenging.
According to Moody's, at least a quarter of 254 companies, facing EUR 133 billion in LBO-related debt maturing through 2015 could default.
"Over half the debt maturing through 2015 is concentrated in 36 companies, each of which has over EUR 1 billion of debt," said Chetan Modi, Head of Moody's European leveraged finance and author of the report.
Although the results of the latest study are consistent with the rating agency's previous analyses, these companies are now one year closer to the 2014-15 refinancing peak. The refinancing peak remains worrisome, given the weak macroeconomic environment and the generally low credit quality of this debt, the agency observed.
Many larger companies will seek to refinance with high-yield bond. Further, more companies will attempt to amend-and-extend loans in 2012.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org