- Asian companies are at a higher risk of default in the coming quarters than last year, a Reuters analysis of their credit ratios showed, as the coronavirus pandemic has squeezed revenue and made it harder to refinance debt.
Net debt to EBITDA , which shows how many years it would take a company to pay back debt, was at its highest since June 2014.Asian companies' net debt to EBITDA ratio https://fingfx.thomsonreuters.com/gfx/mkt/xlbvgglobvq/Asian%20companies%20net%20debt%20to%20EBITDA%20ratio.jpgAsian companies' EBIT to interest expense ratio https://fingfx.thomsonreuters.com/gfx/mkt/rlgvdkolopo/Asian%20companies%20EBIT%20%20to%20interest%20expense%20ratio.
The yield on a bond issued by China's Tianqi Lithium Corp , for instance, climbed to about 60% last month on perceived higher risk of the company missing its interest payments this year. It is currently trading at 40%.