Generous debt baskets risk loan recovery prospects, says Fitch

Fitch Ratings said on Tuesday that the increasing ability of leveraged borrowers to add additional debt without investor pushback would adversely affect the recovery rates for lenders in the event of a default.

  • By David Bell
  • 16 Oct 2018
The rating agency highlighted on Tuesday the increasing ability of borrowers to expand the amount of debt they can incur without requiring the consent of lenders, because of loosening covenant restrictions, as well as stretching the limits of leverage ratio baskets by using loose definitions of Ebitda. Sponsors ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.

Bookrunners of European Leveraged Loans

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 5,515.97 36 7.06%
2 Credit Agricole CIB 5,307.12 27 6.79%
3 Deutsche Bank 5,150.50 27 6.59%
4 JPMorgan 4,531.58 20 5.80%
5 Goldman Sachs 4,189.40 23 5.36%

Bookrunners of European HY Bonds

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 Deutsche Bank 2,970.40 18 8.37%
2 Citi 2,605.77 18 7.34%
3 BNP Paribas 2,567.12 24 7.23%
4 JPMorgan 2,467.56 18 6.95%
5 Goldman Sachs 1,928.73 16 5.43%

Bookrunners of Dollar Denominated HY Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 14,123.16 113 9.80%
2 Citi 13,032.25 105 9.05%
3 Bank of America Merrill Lynch 10,741.94 90 7.46%
4 Goldman Sachs 10,344.47 77 7.18%
5 Morgan Stanley 8,543.55 64 5.93%