In a new report, Moody’s identifies the US corporate borrowers most at risk from Europe’s economic problems.
Moody’s identified around 170 nonfinancial companies based in the Americas that make public filings and derive at least 20% of their revenues from Europe. The three companies that generate the largest percentage of their revenues from Europe are Coca-Cola Enterprises Inc., Audatex Holdings, LLC (a subsidiary of Solera Holdings, Inc.) and Manpower, Inc.
Companies with low credit ratings are more at risk as they have less cushion to absorb a recession-induced revenue reduction. Around 53% of the companies with meaningful European exposure have speculative-grade ratings. Half of those are rated single-B and lower. The single-B and lower rated companies with the most European revenue exposure are Catalent, EnergySolutions, LLC and Exide Technologies.
US companies’ foreign sales will also be hurt if the euro continues to decrease in value and further reduces companies’ translated earnings.
For details and the full ranking of companies, see Americas Corporates: European Revenue Exposures