Euro Corporates fear continued borrowing squeeze

As banks tighten their purse strings, European companies may find themselves suffering from impaired borrowing capabilities, potentially leading to funding shortfalls, says Moody's

A climate of conservatism at European banks portends a bleak future for companies in the region, according to Jean-Michel Carayon, group credit officer for corporates in EMEA at Moody's. Even after the recent round of taxpayer-sponsored bank recapitalisations, he says there is still uncertainty about the amount of capital banks will make available to companies. Given the condition of the market, he expects more restrictions than have been seen for a number of years.

"We expect credit policy