Refinancing will cover leveraged loan imbalance, says Fitch

Refinancing will absorb most of the potential funding gap in the US leveraged finance market over the next five years, according to a new report by Fitch Ratings.

In the report, Bridging the Refinancing Cliff, Fitch says that although recent refinancing of leveraged loans has “diminished a substantial portion” of debt due to mature in 2010 and 2011, it has not made much of a dent in the $600 billion of loans due between 2012 and 2014.

Debt maturities in leveraged loans will reach critical mass