<\/p>\n
U.S. corporates\u2019 interest coverage continued decline in Q1.<\/p>\n
High interest rates are increasingly eating into corporate profits.<\/p>\n
S&P Global Market Intelligence reports debt service costs consumed a larger share of U.S. corporate profits in the first quarter.<\/p>\n
For the median investment grade company, the interest coverage ratio \u2014 the ratio of pre-tax income to interest payments \u2014 declined to 5.78 in the first quarter of 2024 from 6.08 in the fourth quarter of 2023, S&P said.<\/p>\n
For lower-rated issuers, the ratio declined to 2.62 in the first quarter of 2024 from 2.89 in the fourth quarter of 2023.<\/p>\n
This marked four straight quarters of declining interest coverage for sub-investment grade companies, and the second consecutive quarterly decline for investment grade firms, S&P noted.<\/p>\n
\u201cBusinesses are grappling with higher borrowing costs as the U.S. Federal Reserve holds the federal funds rate at its recent peak,\u201d the firm said.<\/p>\n
For investment grade companies, interest coverage dropped in the IT, energy, consumer staples and real estate sectors, S&P said. The ratio declined in eight of 10 corporate sectors among non-investment grade companies.<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
U.S. corporates\u2019 interest coverage continued decline in Q1. High interest rates are increasingly eating into corporate profits. S&P Global Market Intelligence reports debt service costs consumed a larger share of U.S. corporate profits in the first quarter. For the median investment grade company, the interest coverage ratio \u2014 the ratio of pre-tax income to interest […]<\/p>\n","protected":false},"author":1,"featured_media":1951,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1950","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/San-Francisco-35-1000x445.jpeg",1000,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/San-Francisco-35-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/San-Francisco-35-300x200.jpeg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/San-Francisco-35.jpeg",1000,668,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=1950"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1950\/revisions"}],"predecessor-version":[{"id":1952,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1950\/revisions\/1952"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/1951"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=1950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=1950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=1950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}