Research Recap submits:

Rollover of revolving credit facilities is the key to sustaining adequate liquidity among non-financial companies, according to Moody’s.

In its Spring survey of liquidity conditions of 1,300 non-financial, non-utility companies in the Americas, Moody’s said the majority of rated issuers (91%) benefit from committed revolving credit facilities as a reliable source of external funding. “Over the next 12 months, approximately 13% of these issuers face either partial or total maturities of their revolving credit facilities. While revolving credit facilities were easily extended when financial market conditions were robust, bank capital and lending appetites are more constrained and lenders may seek to amend facility size or terms upon renewal, weakening the liquidity profiles of some issuers.”

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