News Column

Fitch: Influx of Refinancing Activity in 2013 Creates New Loan Maturity Wall

February 24, 2014

CHICAGO--(BUSINESS WIRE)-- Loan refinancing activity and robust high yield bond issuance extended or diminished $475 billion of loans within the refinancing cliff timeframe over the last 12 months ended Dec. 31, 2013 according to Fitch Ratings' 'Bridging the Refinancing Cliff, Volume VIII,' published today.

Loan refinancing has represented the greatest single driver of loan movement within the refinancing cliff timeframe in each of the last three years. Loan refinancing (combined with repricings) totaled $756 billion in 2013, or 65% of total loan issuance. Fitch estimates that refinancing activity in 2013 reduced the new refinancing cliff (2014-2018) by $265 billion.

The market has clearly been focused on longer dated maturities, as 60% of total refinancing issuance in 2013 was applied to loan maturities in 2015 and beyond. As a result, the total amount of loans coming due in 2017 and 2018 has increased considerably over the last two years and totaled $890 billion at year-end 2013. This new 2017-2018 peak is estimated to be approximately 20% larger than the original refinancing cliff peak (2013 and 2014) estimated in early 2009.

This installment of the series provides a breakdown and analysis of the top 50 debt issuers and their upcoming debt maturities. The report also focuses on those issuers with meaningful maturities over the next 24 months.

The full report 'Bridging the Refinancing Cliff' is available by clicking on the link or at:

www.fitchratings.com/sectors/CorporateFinance/Leveraged Finance.

Additional information is available at www.fitchratings.com/usleveragedfinance.

Applicable Criteria and Related Research:

-- U.S. Leveraged Finance Market Quarterly - Fourth-Quarter Synopsis/2014 Preview (January 2014)

-- The Credit Outlook (January 2014)

-- Pay-in-Kind (PIK) Debt (U.S. Market, Credit and Payment Trends) (January 2014)

-- Fitch U.S. High Yield Default Insight - 2014 Default Outlook (December 2013)

-- U.S. Leveraged Finance Stats Quarterly - Second Quarter 2013 (November 2013)

Applicable Criteria and Related Research: Bridging the U.S. Refinancing Cliff (Volume VIII - Loan Refinancing Morphs Cliff Shape)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=736375

Fitch U.S. High Yield Default Insight - 2014 Default Outlook

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=726738

U.S. Leveraged Finance Stats Quarterly - Second Quarter 2013

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=717636

Pay-in-Kind (PIK) Debt (U.S. Market, Credit and Payment Trends)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=729935

The Credit Outlook

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=729296

U.S. Leveraged Finance Market Quarterly - Fourth-Quarter Synopsis/2014 Preview

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=729577

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Darin Schmalz, +1-312-606-2324

Director

Fitch Ratings, Inc.

70 W. Madison Street

Chicago, IL 60602

or

Michael Simonton, CFA, +1-312-368-3138

Managing Director

or

Media Relations

Brian Bertsch, +1-212-908-0549

brian.bertsch@fitchratings.com

Source: Fitch Ratings


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