In the latest stress test administered to the private mid-market borrowers in its universe, bond ratings agency KBRA found that the former have sufficient liquidity to meet their interest costs for a full fiscal year, although the higher rates will reduce their EBITDA-to-interest and cash coverage metrics in the process.
Mid-market borrowers pass stress test amid higher rates, report says
KBRA says its assessment portfolio experienced ‘only a slight deterioration’ in interest rate coverage.
