Moody's: Debt cushion better recovery rate predictor for EMEA spec-grade firms post-default
London, 30 November 2016-- Recovery rates, which measure the amount of principal and accrued interest an investor is likely to get back when a company defaults, are significantly higher for lenders that hold senior ranked debt at 72% than those holding junior debt, says Moody's in a new report. However, in the absence of second lien and mezzanine lenders, which are junior to first lien lenders in the capital structure and are the first to absorb losses in a restructuring involving a...
Moody's Investors Service is a leading provider of credit ratings, research, and risk analysis. Moody's commitment and expertise contributes to transparent and integrated financial markets, protecting the integrity of credit. Our ratings and analysis track debt covering more than:
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