Credit rating agency, Moody’s Investor Services, says outstanding loan debts of U.S. corporations stood at $3.3 trillion dollars in the first quarter of 2020.
The outstanding loan debt size of U.S. corporations however, quickly contracted at annualized rate 0f 12.7% to the $3.070 trillion by the end of the third quarter of 2020.
By contrast, the outstanding bond debt of U.S. corporations expanded at an annualized rate of 16.1% from the $6.54 trillion of Q1 2020 to the $7.048 trillion dollars of Q3 2020.
According to Moody’s the slowdown in debt of U.S. corporations (excluding bonds and mortgages) is indicator of the deceleration of the yearly growth of total debt of corporations.
Adding that, corporate credit quality is likely to benefit considerably if the growth of outstanding corporate debt slows amid rapid corporate earnings growth.
