(MENAFN- Khaleej Times) For bank and bond debt due to mature over the next four years European investment-grade companies face refinancing needs of about $1.
Middle East investment-grade companies face refinancing needs of about $91 billion for bank and bond debt due to mature over the next four years Moody’s Investors Service said on Tuesday.
The four-year refinancing needs of the Middle East account for approximately eight per cent of total refinancing requirements of Europe Middle East and Africa bank and debt maturities of $1.17 trillion between 2015 and 2018.
In 2012 and 2013 investment-grade corporate issuers faced four-year refinancing needs amounting to $1.19 trillion and $1.23 trillion respectively. These figures mainly comprise $322 billion in bank debt and $788 billion in bonds.
This compares with $380 billion in bank debt and $747 billion in bonds in 2012 and $361 billion in bank debt and $797 billion in bonds in 2013 Moody’s said in a report entitled “Emea Investment-Grade Non-Financial Companies: Continuing Disintermediation Should Not Challenge Refinancing Execution over the Next Four Years”.
The ratings agency said the volume of both bank and bond debt annual maturities will increase from 2015 to 2016. However in the period 2016-2018 bond and bank maturities show a declining trend.
For bank and bond debt due to mature over the next four years European investment-grade companies face refinancing needs of about $1.06 trillion. Utilities have the largest needs at 22 per cent approximately $260 billion followed by the energy telecommunications transportation services and automotive sectors respectively.
Among Emea countries companies in Germany France and the UK account for the greatest amounts of bank and bond maturities (each at 15 per cent) in the next four years.
While last year euro-periphery companies appeared to face the greatest refinancing challenges Moody’s expects refinancing concerns may shift to Russia which now accounts for 10 per cent of total Emea (11 per cent of European) bank and bond maturities in the same timeframe.
Moody’s said it expects that the average investment grade corporate credit quality over the next four years will be stable to slightly improving with liquidity remaining solid supported by the gradual macro-economic recovery.
— issacjohnkhaleejtimes.com