Abstract: WHERE THE CREDIT CRUNCH COULD MOST SQUEEZE U.S. SPECULATIVE-GRADE CORPORATE BORROWERS, by John J. Bilardello, New York A rising number of U.S. speculative-grade companies are confronting liquidity concerns and, in our opinion, are creeping closer to breaches of their loan covenants as uncertainty in the global financial markets and a deep credit crunch make borrowing more difficult. Borrowers across the 'B' rating category have particularly seen their credit quality suffer. As part of a cross-industry review, our analysts identified and examined borrowers that make up this group. This assessment looked specifically at leverage and liquidity positions, the possibility of covenant breaches, and whether or not companies had credit market exposure to Lehman Brothers Inc.--all in the context of the credit

Brief Excerpt: RESEARCH Ratings Definitions Special Report: How The Credit Crunch Is Tying Up U.S. Speculative-Grade Corporates Publication date: 10-Nov-2008 Contents WHERE THE CREDIT CRUNCH COULD MOST SQUEEZE U.S. SPECULATIVE-GRADE CORPORATE BORROWERS...

Report Type: Commentary
Sector: Corporations, Global Issuers
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 S&P Credit Research
S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.