pdf-articles Ratings /ratings/en/research/pdf-articles/210622-global-debt-leverage-spreads-costs-shocks-may-double-rate-of-loss-making-100152991 content esgSubNav

Global Debt Leverage: Spreads, Costs Shocks May Double Rate Of Loss-Making

While companies’ pushing out of debt maturities has cushioned them against interest-cost rises, our stress test of more than 10,000 global corporates indicates that a twin shock of 1970s-style cost inflation and spreads at the level of the Global Financial Crisis could almost double potential defaulters, to 12%, by 2023—with the share of "highly indebted" companies reaching almost 40%.

Download