Davide Campari-Milano SpA, the Milan-based distiller, sold its first bonds in three years amid renewed investor demand for debt from Europe’s most indebted countries.
Corporate defaults have risen in Europe and may climb further because of economic and political uncertainty, deteriorating growth and looming debt maturities, Standard & Poor’s said in a report.
Corporate defaults may almost double in Europe as companies struggle to refinance debt and banks hoard cash borrowed from the European Central Bank or use it to buy government bonds.
Snowstorms and freezing temperatures disrupted travel across Europe as airports from London to Amsterdam halted flights and Eurostar Group Ltd. said train cancelations are likely to continue over the weekend.
Higher interest rates and refinancing risks will likely prompt a “second wave of defaults” in Europe in 2012 and 2013, particularly among leveraged buyouts, according to Standard & Poor’s.
"A notable feature of recent defaults is the high proportion of companies defaulting for a second or third time."
- Paul Watters on Sep 12, 2013