This is an encouraging sign amid a challenging economy that companies, after going overboard on debt just a few years ago, have their finances in order. And investors aren’t completely at ease; they have demanded higher interest rates from companies with low credit ratings, relative to U.S. Treasuries, since the end of August. More on USA companies managing debt...
Tuesday, October 18, 2011
Default rate falls for US companies.
The number of U.S. companies missing debt payments is steadily falling and dropped to just 1.9 percent of companies in the 12 months ended in September, down from 11.5 percent as of November 2009, according to Standard & Poor’s. This is the lowest default rate since April 2008.
This is an encouraging sign amid a challenging economy that companies, after going overboard on debt just a few years ago, have their finances in order. And investors aren’t completely at ease; they have demanded higher interest rates from companies with low credit ratings, relative to U.S. Treasuries, since the end of August. More on USA companies managing debt...
Source: USA TODAY
This is an encouraging sign amid a challenging economy that companies, after going overboard on debt just a few years ago, have their finances in order. And investors aren’t completely at ease; they have demanded higher interest rates from companies with low credit ratings, relative to U.S. Treasuries, since the end of August. More on USA companies managing debt...
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