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S&P: €3.8 trillion in European corporate debt to mature through 2024

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S&P: €3.8 trillion in European corporate debt to mature through 2024

An estimated €3.8 trillion of European corporate debt is set to mature from the second half of 2019 through 2024, representing a 7% increase over the past 12 months, according to a new report from S&P Global Ratings.

Half of that debt was issued by companies in the U.K., Germany and France, the rating agency said, with British firms accounting for the biggest share at 18%. By sector, financial services accounts for 51% of the maturing debt.

S&P Global Ratings said the maturities should be manageable, as 85% of the total debt maturing through 2024, or €3.2 trillion, is investment grade. Most of the higher-cost debt with speculative-grade ratings will not mature until 2022 at the earliest.

The rating agency said the recent stimulus package announced by the European Central Bank would help lower funding costs and improve credit availability, although slowing economic growth, Brexit uncertainty and geopolitical issues remain as risks to companies' financing conditions.

In the first half of 2019, European corporate debt issuance climbed 6% year over year, to €452 billion, with issuance from non-financial services companies rising 9%.

The total amount of European corporate debt represents almost 38% of the €10.1 trillion in global debt maturing through 2024, S&P Global Ratings said.