Mid-market corporations face a distinct refinancing horizon as trillions in debt issued during historic low-rate environments approach maturity. Credit rating agencies have signaled potential downgrade pressures for firms unable to offset interest expenses through operational yield gains.
Capital Structure Adjustments
Firms are increasingly leveraging private credit markets to bypass public debt issuance. This pivot has sustained liquidity for distressed issuers, albeit at higher coupon costs and stricter debt covenants.