Refunding risks for EMEA non-financial corporate issuers rated Baa & below in 2008-2010

As the first anniversary of the subprime crisis passes, corporate issuers in the EMEA region continue to feel its secondary effects. With more challenging capital markets and overall reduced risk appetite from investors and banks, Sabine Renner and Max Huefner of Moody's examine the refunding risks for EMEA non-financial corporate issuers rated Baa and below

Corporate issuers in the EMEA region continue to feel the flow-on effects of the current challenges facing capital markets. When coupled with the overall reduced risk appetite from investors and banks, liquidity and refinancing concerns have increased dramatically over the past few months.

While the market has gradually shown more fluidity in the second quarter of this year, high selectivity by investors and widening spreads continue to influence market access, notably in the Baa rating