Moody’s Sees Trouble for Over $1 Trillion of Maturing Junk Debt

US speculative-grade companies are facing heightened refinancing and default risks amid higher-for-longer interest rates and limited credit market access, according to Moody’s Investors Service Inc.

Junk-rated firms have $1.87 trillion of debt maturing between 2024 and 2028, an Oct. 12 report by the credit grader shows. That marks a 27% jump from the $1.47 trillion anticipated between 2023 and 2027 in last year’s study, wrote analysts including Botir Sharipov.

“The increase – reflecting higher maturities for revolving credit facilities, loans and bonds – comes amid weak macroeconomic and credit conditions, raising companies’ refinancing and default risk,” noted the ...