Latest news with #corporatedistress
Reuters
10 hours ago
- Business
- Reuters
European corporate distress index rises to nine-month high, Weil index shows
LONDON, June 26 (Reuters) - Corporate distress levels in Europe rose to a nine-month high in the three months to the end of May, an index compiled by law firm Weil, Gotshal & Manges shows, driven by an uncertain economic outlook hampered by U.S. trade and geopolitical risks. The Weil European Distress Index (WEDI) uses data from more than 3,750 listed European companies to monitor 16 indicators reflecting symptoms of corporate distress while considering metrics such as liquidity, profitability, risk and valuation. The index rose to 4.1 from 3.8 at the end of the previous three-month period, suggesting increased probability of higher default rates on corporate debt. Distress among retail and consumer goods businesses climbed to its highest since September 2009, the WEDI quarterly report showed. The sectoral downturn has been driven by factors such as tight credit conditions and weakening consumer demand, the report said. Germany remained the most distressed market in Europe with levels rising to their highest since May 2020, when the global economy was ravaged by the COVID-19 pandemic. Europe's biggest economy has contracted for two straight years, though massive fiscal stimulus has boosted confidence in its growth outlook. Weil also flagged downgrades to Europe's growth outlook as well as elevated geopolitical uncertainty as factors contributing to rising corporate distress.
Bloomberg
11 hours ago
- Business
- Bloomberg
European Retail Distress Has Overtaken Industrials, Real Estate
Retail is now the most distressed sector in Europe, overtaking industrials and real estate companies, according to Weil, Gotshal & Manges ' latest measure of corporate distress in the region. Retail and consumer goods companies are suffering from weak discretionary spending, margin compression and tightening credit conditions, the report said, pushing distress to the highest level since the global financial crisis in 2009. The deterioration has been rapid, with retail jumping two spots among sectors in Weil's European Distress Index since the firm last published the report in April.
