Daily News: December 30, 2013

Leverage Highest Since 2007 Amid Unprecedented Borrowing

Bloomberg said as the U.S. economy enters its fifth year of expansion after the worst recession in seven decades, Moody’s predicts that companies will be emboldened to seek out acquisitions and increase spending to enrich their owners. That may prompt borrowers to boost leverage, which has risen to the highest level since 2007.

Bloomberg noted a total of 223 companies had their bond ratings cut by Moody’s in the six months ended November, compared with 172 increases, the highest proportion of downgrades since April.

To read the Bloomberg story, click here.