EMEA have liquidity profiles
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Serendib Logistics moved to their own building in Vauxhall
Street recently. Managing Director, Serendib, Niluka Welikala
opening the new premises. Picture by Sumanachandra Ariyawansa
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Fitch Ratings says EMEA corporate generally have comfortable
liquidity profiles, aided by undrawn committed bank funding, compared
with some Asia-Pacific corporate that rely on short-dated uncommitted
bank funding.
In its 2008 Liquidity Study (covering around 220 corporates that are
rated ?BBB? and below), Fitch says the study?s results are similar to
last year?s, with company-specific liquidity-related adverse risks
rather than any sector-wide liquidity issues.
?Companies in developed markets successfully planned ahead by locking
in cheap three-to-five-year committed bank funding,? says Credit Officer
in Fitch?s Corporate team John Hatton. ?However, we believe liquidity
risk will become more of an issue in 2010 as 2006 and 2007 bank lines
face refinancing and the extent of the weakened economic environment
becomes more visible in corporates? results.?
?Corporates which did not access the bond market in the hope that
pricing will return to 2007 levels may be forced to accept potentially
higher pricing from bonds and/or bank lines,? adds Hatton. |
