30% view credit availability as declining, compared with 25% in April.

Modest decline in credit availability

While credit is broadly available, particularly to large-cap enterprises, respondents do cite a modest decline in credit availability. Only 26% view credit markets as improving, compared with 30% in April.

Compared with two years ago, banks are on a stronger footing and better capitalized. Yet this healthier picture does not always translate into increased lending. Many banks have tightened lending standards, particularly for small-to-medium enterprise (SME) borrowers. Banks also face higher capital requirements under impending Basel III regulations, which could restrict their ability to increase the flow of credit into the economy.

Please indicate your level of confident in credit availability at the global level

30%		view credit availability as declining, compared with 25% in April.

Deleveraging continues

Companies expect to continue to decrease debt levels. Eighty-two percent expect to see their debt-to-capital ratios remain stable or fall over the year ahead. Companies are choosing to retire debt and deploy capital more cautiously.

How do you expect your company’s debt-to-capital ratio to change over the next 12 months?

Refinancing slows

Only 26% of companies plan to refinance their borrowings over the next 12 months, down from 34% in April. Most are doing so in order to optimize their capital structures, reduce the size of their interest bills or extend the maturity of their debt. Many European borrowers have used the US private placement market to refinance existing bank loans.

Does your company plan to refinance loans or other dept obligations in the next 12 months?

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