EMEA oil, gas, metals and mining companies face greatest liquidity pressure in the region – Moody’s

The share of companies facing liquidity pressure in EMEA oil, gas, metals and mining speculative-grade sectors more than doubled to 23 percent in March 2016 from 11 percent a year ago according to Moody’s EMEA Liquidity Stress Index, published today.

The above sectors drove the overall increasing liquidity pressure among EMEA corporates to 11.5 percent in March from its all-time low of 8.9 percent in February 2015, Moody’s said, adding that the declining ability of high-yield corporates to raise debt could push the stress level even higher this year.

“While there is increased liquidity stress concentrated in the EMEA commodities sectors, average liquidity currently remains stable amongst EMEA speculative-grade non-financial companies”, said Tobias Wagner, a Vice President – Senior Analyst at Moody’s.

Moody’s liquidity stress index shows that the liquidity profiles of oil, gas, metals and mining sector-related companies across all major regions, including the US, EMEA and Asia, continue to weaken. In EMEA particularly, companies from the above sectors now comprise 30 percent of all speculative-grade companies with the weakest liquidity, up from 18.5 percent a year ago.

 

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