Moody's Corporate Overview and Financial Outlook
Debt Maturities $ Billions
Corporate Overview | MIS Business Conditions | MA Business Conditions | Financial Review and Outlook | Appendix
Demand for Financing Likely to Continue, Driven by
Refunding, Pre-funding, M&A Activity and Capital Spending
250
Debt Maturities: U.S. Moody's-Rated
Corporate Bonds and Loans
200
150
100
50
LLL
2011
2012
2013
Investment-Grade Bonds
Speculative-Grade Bonds
M&A Activity: U.S. Deal Volume
ggggg
Deal Volume $ Billions
600
0
500
400
100
200
300
200
100
300
400
500
0
600
2014
2015
1Q95 1Q97 1Q99 1Q01 1Q03 1Q05 1Q07 1Q09
U.S. Announced M&A
•Baa Spread over 10 year Treasuries (inverted)
Speculative-Grade Bank Loans
Source: Moody's Investors Service, Feb 2011
Source: Goldman Sachs
>> Refunding requirements over the next five years, particularly for speculative-grade
loans, are significant and will help drive issuance activity
>> Positive M&A trends have continued in early 2011
» Expect growth in corporate capital spending seen in late 2010 to continue
MOODY'S
MARCH 1, 2011
7
Baa Credit Spreads (bps)View entire presentation