CHICAGO--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: Liquidity and Covenant Analysis for Large U.S. Leveraged Issuers -- U.S. Companies Sufficiently Positioned Despite Market Turmoil

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=652310

Near-term liquidity remains ample for many of the 53 largest U.S. speculative-grade issuers of high yield bonds and leveraged loans, according to the latest issue of Fitch Ratings' 'Liquidity and Covenant Analysis for Large U.S. Leveraged Issuers'.

Of the issuers studied, 70% have more than a combined $1 billion in cash and revolver availability. While most have addressed their near-term debt maturities over the past several periods, a number of opportunistic issuers continue to address their 2013 and 2014 maturities. Specifically, amended and extended agreements and bond-for-loan takeouts undertaken over the last several quarters have eased a great deal of the refinancing pressure by allowing issuers to push out their debt maturities beyond 2014. Covenant headroom remains adequate for most of these large issuers. Approximately 42% of the issuers saw a covenant cushion decline over the last period. However, the average percentage cushion decline was minimal at 5%.

Given the economic uncertainty both in the U.S. and overseas, Fitch remains focused on liquidity and covenant flexibility for many of these highly leveraged issuers. Marginal top-line growth coupled with cost inflation may impact future cash flow levels and slow the improvement in credit metrics seen over the last few quarters. Most capital market activity for the remainder of 2011 into 2012 will likely be more strategic, addressing potential issues that companies foresee over the next few years.

For more information, visit 'www.fitchratings.com/usleveragedfinance'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'U.S. Leveraged Finance Stats Quarterly - Second-Quarter, Sept. 27, 2011;

--'U.S. Healthcare Stats Quarterly Second-Quarter 201', Sept. 23, 2011;

--'Credit Encyclo-Media Volume IV', Sept. 16, 2011;

--'Fitch U.S. High Yield Default Insight -- August 2011, Sept. 16, 2011;

--'U.S. Leveraged Finance Multiples EV-Aluator', Sept. 9, 2011;

--'Fitch 50 -- Structural Profiles of 50 Leveraged Credits', July 20, 2011;

--'U.S. Leveraged Finance Market Quarterly: Second-Quarter 2011', July 20, 2011;

--'U.S. Corporate Credit: Outlook for Second Half of 2011', July 13, 2011.

Applicable Criteria and Related Research:

Credit Encyclo-Media Volume IV: Fitch's Comprehensive Analysis of the U.S. Media & Entertainment Sector

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=651574

U.S. High Yield Default Insight -- August 2011

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=651183

U.S. Leveraged Finance Multiples EV-Aluator -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=651260

Fitch 50 -- Structural Profiles of 50 Leveraged Credits

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646322

U.S. Leveraged Finance Market Quarterly: Second-Quarter 2011

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=644913

U.S. Corporate Credit: Outlook for Second Half of 2011

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=645189

U.S. Leveraged Finance Stats Quarterly -- Second Quarter 2011

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=651353

U.S. Healthcare Stats Quarterly Second-Quarter 2011 -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=652107

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CONTACT:

Fitch Ratings
Darin Schmalz, +1-312-606-2324
Director
Fitch Inc.
70 West Madison Street
Chicago, IL 60602
or
Mike Simonton, CFA, +1-312-606-3138
Managing Director
or
Media Relations:
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Email: brian.bertsch@fitchratings.com

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Professional Services  Banking

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