The French debt crisis is straining the financing costs of banks and companies
Doubts about France's health add to the rise in interest rates and cause a more expensive bill, despite good fundamentals. Read
The cost of corporate debt in euros has increased due to rising interest rates and concerns over France's financial health. The average cost of investment-grade corporate debt is now 4.2%, up from 3.4% in June, and is not expected to decrease this year or next, according to CreditSights. Companies with lower credit ratings are facing even higher costs, with high-yield debt now at 6.6% and expected to reach 7% by 2027.
The increase is attributed to the European Central Bank's interest rate hikes and the impact of France's financial woes on sovereign debt.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
