SINGAPORE: S&P Global Fixed Income Research estimates that US$10.23 trillion in corporate debt rated by S&P Global Ratings is set to mature globally through 2022.
Scheduled maturities for 2018 have been reduced to US$1.72 trillion (down 5% from the estimate at the beginning of 2017) after many companies refinanced debt amid the accommodative funding conditions of the past year.
“Maturing debt is set to rise to a peak of US$2.27 trillion in 2022,” it said in its report entitled “Global refinancing study – US$10.23 trillion in rated debt to mature through year-end 2022”.
The head of S&P Global Fixed Income Research Diane Vazza said the amount of rated corporate debt scheduled to mature over the next five years has risen by 6.6% since its study from one year ago, in which it estimated that US$9.6 trillion was set to mature through 2021.
Vazza pointed out in the current credit environment, lenders are likely to provide sufficient funding for corporate issuers to meet pending maturities, allowing companies to continue rolling maturities to later years.
The lowest-rated debt ('B-' and lower) may be the most susceptible to heightened refinancing risk if investors become more risk averse or market conditions become less favourable.
Approximately US$448.4 billion of the corporate debt maturing through 2022 is rated 'B-' or lower, although less than a quarter of this debt is slated to mature through 2019.