In the News Private Equity Week

Rating Agencies Divided as Leveraged Loan Market Slumps

In the wake of the current economic situation, two rating agencies, Standard & Poor (S&P) and Fitch Ratings, have being making efforts to stimulate the European debt market and create a public market for loans, respectively.

"Neel Sachdev, a debt market specialist at law firm Kirkland & Ellis, said: 'Obviously there is a tension with S&P rating these deals as they need a lot of private information, but the plans' success would turn leveraged loans into a more bondlike product.' He said this would be a step towards the European market becoming more like the US markets where there is far greater public disclosure."

This article appeared in its entirety in the September 23, 2008 edition of Private Equity Week.