The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Online extra: Loans market under stress

As in the bond market, emerging markets corporates will come under stress in the loans market. Refinancing needs are estimated to be $156 billion, with the biggest redemptions due in Russia, UAE, Mexico, Turkey and Korea, according to JPMorgan. And it is not just weaker credits that will be under pressure.

Corporates fight off default mode

Even supposed blue-chip companies, such as Mexico’s Cemex, India’s Tata Steel and Russia’s Rusal, face big refinancing risks this year. All three have been caught out by the credit crunch and are under pressure to finance expensive acquisitions.

Cemex, for example, is struggling to keep its debt burden under control following its $14 billion acquisition of Australian firm Rinker in 2007. Although Cemex refinanced about $4 billion of debt due this year in late January, it still faces $2 billion in maturities. The company recently announced a net loss of $707 million in the fourth quarter with operating profit down 35% from a year ago. Net debt at the end of December was four times 12-months ebitda, at $18 million.

Tata Steel too is struggling after paying over the odds for the UK’s Corus in 2007, which it acquired for $12 billion. Morgan Stanley reckons that Corus’s debt covenants may be under pressure soon, according to a report in India’s Business Standard. Indeed the entire Tata group is coming under scrutiny after buying equity stakes of 21% or more in 53 countries since 2000, making it especially vulnerable to the global downturn.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree