EU Member-State Debt Crisis High-yield debt

on 27 april 2010, greek debt rating decreased junk status standard & poor s amidst fears of default greek government. cut portugal s credit ratings 2 notches a, on concerns state debt , public finances on 28 april. on 5 july 2011, portugal s rating decreased junk status moody s (by 4 notches baa1 ba2) saying there growing risk country need second bail-out before ready borrow money financial markets again, , private lenders might have contribute.

on 13 july 2012, moody s cut italy s credit rating 2 notches, baa2 (leaving above junk). moody s warned country cut further.

with ongoing deleveraging process within european banking system, many european cfos still issuing high-yield bonds. result, end of september 2012, total amount of annual primary bond issuances stood @ €50 billion. assumed high-yield bonds still attractive companies stable funding base, although ratings have declined continuously of bonds.