Sub-investment grade European corporates are experiencing a severe increase in financial stress and a dramatic fall in profitability, while their A-rated counterparts are seeing only a marginally increased financial burden. This is according to research by Demica, the securitisation consultancy and technology services company. Financial pressure for last year was measured by using a model based on interest cover – the relationship between profits and interest payments on debt commitments – and was compared year on year. The study revealed that financial stress has increased for all rated companies in Europe. However, the increase has been marginal for A-rated companies (3%), substantial for B-rated companies (36%), and punishing for sub-investment grade companies (49%). Demica says an increase in leveraged buy-outs is to blame for the heightened financial pressure. Declan Lynch, executive vice president at Demica, commented: ‘Sub-investment grade corporations across Europe are being hit hard by the high cost of servicing current debt commitments.’
A report by broking group Marsh examines the repercussions from the administration of the South Korean company, which filed for bankruptcy protection at the end of August.
Global research by C2FO suggests that smaller businesses are less concerned with the repercussions of Brexit and the upcoming US presidential election.
A squeeze on skilled talent means it now takes an average of seven weeks to fill open permanent roles in finance in the UK according to new research from financial services recruitment firm Robert Half.
Early-stage merger and acquisition deals in Asia-Pacific show nearly 10% year-on-year growth in recent months.