Europe oil firms, UK retailers may see debt revamp

LONDON: Oil companies and UK retailers are the sectors most likely to come under financial stress in Europe this year, even as central bank stimulus keeps borrowing costs near historic lows, according to S&P Global Ratings and Fitch Ratings.

With the European Central Bank (ECB) committing to an asset-purchase programme until at least December, leveraged companies can refinance their debt cheaply and avoid restructuring. In this environment, the default rate for non-financial companies in Europe would not rise past 2%, both ratings firms said in interviews.