Consumers had become extraordinarily overleveraged
. As interest rates ground higher the first signs of trouble appeared in the underperformance of banks, rising credit card delinquencies and the collapse of leveraged hedge funds at major investment banks.
This according to the experts entails that the company is overleveraged
, with total debt ratio of 1.67x based on interest bearing liabilities of N251.79 billion and total equity of N194.79 billion.
'Based on the numbers also from what I remember, we are not overleveraged
. In other words we can really absorb more debts as long as the terms are good,' Lopez added.
Due to the concentrated nature of the pool, Fitch performed a sensitivity analysis that grouped the remaining loans based on the likelihood of repayment and expected losses from the liquidation of specially serviced loans and/or underperforming or overleveraged
"But, after a decade of cheap credit, many are faced with the challenge of managing overleveraged
financial structures at a time when margins are coming under pressure.
He learned from a mentor to never get overleveraged
and to have enough [financial] cushion to ride out rainy periods, he says.
Moreover, a net 17% said corporate balance sheets were overleveraged
, the highest since April 2009, according to BofAML.
Transactions at risk include those that require large amounts of foreign exchange offshore and those that are from overleveraged
companies or companies that rely heavily on domestic debt financing.
This economic slowdown will lead to modest increases in new problem loan formation, particularly in the overleveraged
small and mid-sized company (SME) and retail (loans to individuals) segments.
Interest rate rises in 2016 and onwards will significantly impact consumer spending on vehicles given that UK households remain highly overleveraged
and the car market has become very reliant on auto loan-financed purchases.
Having earlier resisted the charms of Energy Transfer -- and taken on two activist investors amid an underperforming stock price -- Williams finally succumbed to an overpriced, overleveraged
offer last September