Europe’s most troubled companies: Who’s hit hardest by high interest rates?
From Legoland's owner to Lipton tea and Aston Martin, Europe's lowest-rated borrowers face a looming refinancing wall as interest rates rise again.
Europe's most troubled companies are grappling with the rising costs of borrowing money, a situation exacerbated by the European Central Bank's decision to raise interest rates. Companies such as Colisée, a French operator of nursing homes, Stow Group, a Belgian maker of warehouse storage systems, and Merlin Entertainments, which owns popular attractions like Legoland and Madame Tussauds, are among those feeling the pinch.
These companies, along with others like Solera, AD Education, Pharmanovia, and Lipton Teas and Infusions, are all rated CCC or lower by credit rating agencies. The higher borrowing costs are forcing investors to demand higher returns, making it more difficult for these struggling businesses to obtain new loans. The European Central Bank's recent rate hikes have increased the pressure on these weakest borrowers, with some debt nearing maturity and investors demanding higher returns to lend money.
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