Mark Bodon, Senior analyst, Moody's, London
Idiosyncratic risk has already increased across Europe due to higher M&A and LBO activity, combined with increased investor appetite for risk and abundant liquidity, all contributing to more aggressive transaction structures. This will continue in 2007 as long as credit market conditions do not deteriorate.
Ratings have been exposed to event risk through external LBO activity or internal shareholder pressure. The record levels of private equity buyou