Company Distress Levels in Europe Rise for First Time Since 2016

The number of distressed companies in Europe, the Middle East and Africa rose in the first half for the first time in more than two years, according to a report by Moody’s Investors Service, Bloomberg News reported. Moody’s list of distressed companies rose to 47 from 39 in the first half of the year, according to the report published on Thursday. It’s the first time the list increased since the end of 2016. The total count of EMEA businesses with a high probability of default is also expected to expand in the next 12 months, particularly in the event of a recession, as the number of companies close to joining the list outnumbers those that could leave it due to an upgrade, said Moody’s senior analyst Kristin Yeatman. The report is unlikely to deter the ongoing rally in riskier corporate bonds, however. Read more