Companies that piled on debt throughout the pandemic and the economic recovery could be in for a tough road ahead as the bills come due.
Economists and analysts expect some kind of recession to hit the US economy in 2023 and the severity of it could weigh heavily on both large and small companies as they repay debt. “Faced with an overhang of pandemic-era debt that begins to mature in 2025, companies will be looking for refinancing opportunities,” S&P Global Ratings said.
The Federal Reserve has sharply raised its benchmark interest rate in an effort to tame inflation, but that has made borrowing more expensive. The rate is currently in a range of 4.50 percent to 4.75 percent after starting last year at basically zero.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: