The average company’s credit ratings has fallen in the three biggest euro zone economies over the last year, according to a new report, highlighting the slump in the region’s short-lived recovery.
Corporate credit ratings had dropped in France, Germany and Italy—the euro zone’s biggest economies by 2013 GDP—according to business credit information firm Creditsafe, which analysed the financial health of 26 million companies throughout Europe. Credit ratings reflect a company’s ability to repay its debts and the likelihood of bankruptcy.
Better news came from the U.K., which is not part of the single currency zone. Corporate credit ratings in the country increased significantly across several bellwether sectors including manufacturing, construction, retail and professional services.