Article: Fitch Ratings: Credit Quality Deteriorates Among U.S. Loan-Financed LBOs.

NEW YORK -- A Fitch Ratings study has found that overall credit quality is eroding and default risk rising among U.S. companies that were taken private through a leveraged buyout (LBO) over the last four years. Rating Outlooks also point to further downward pressure on these credits in the months ahead.

In its study, Fitch reviewed 209 loan-financed LBO transactions executed between 2004 and 2007, accounting for approximately $293 billion in leveraged loan debt.

'The greater risk tolerance that existed in years past enabled many of these deals to come to market with very aggressive capital structures,' said William May, Senior Director, Fitch Ratings Credit Market ...

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