Default Rate May Rise as Company Finances Weaken in Europe, Moody's Says
The default-rate on high-yield companies in Europe may start rising, reversing a near-term trend of increased stability and improving industry outlooks, according to Moody’s Investors Service.
The European speculative-grade default rate declined to 5.8 percent at the end of June, Moody’s said. The New York-based firm expects the rate to fall to 1.4 percent by the end of the year, it said in a report today.
The default rate “will rise again as some more weakly positioned credits struggle to refinance without material debt restructuring and writedowns,” analyst Chetan Modi said in the report today. ...
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