Determination of Donald Trump’s announcement of duties on the US Commercial Partners’ announcement by Moody’s Evaluation House, noting that debt exchanges and debt exchanges have increased.

Specifically, according to a report by Moody’s Ratings published on Tuesday, in the second quarter of the year 21 companies declared bankruptcy, failing to serve debt of more than $ 27 billion. Increased number compared to the 15 companies that have defined their debts of about $ 15 billion in the previous quarter.

As Moody’s notes in her report, the uncertainty about Trump duties and trade has led to a deterioration in credit conditions. He adds that businesses with a lower assessment, many of which were already facing increased credit risks, were forced to restructure or renegotiate their debt, mainly through exchanges of problem loans.

According to Moody’s, private capital companies gained many participation in companies before interest rates in 2022, when there was interest in lower -rating businesses.

These businesses are one of the most vulnerable, according to Moody’s. Therefore, it is not surprising that three of the five companies that declared bankruptcy during the second quarter belonged to private capital companies: Ascend Performance Materials Operations LLC, At Home Group Inc. and Careerbuilder LLC.

After all, one of the biggest dangers for private sector businesses is limited liquidity, according to the house report.

“If market volatility increases, they will not be able to access the liquidity they need,” notes Julia Chursin, Vice President and Senior analyst of Moody’s, referring to these companies. “They will probably not be able to refinance their debt,” he explains.

The loan sector is the one that has suffered the biggest blow, as many of the businesses supported by private capital companies have capital structures that are only on loans. The loan repayment rate was 6.6% at the end of June, compared to 4.2% for high performance bonds, according to Moody’s.

“The problem with debt structures based only on loans is that these loans have a closing exchange rate,” Chursin notes. “If there is a spread enlargement, they must make an out -of -court restructuring.”

Telecommunications Provider Radiate Holdco LLC, which has been evaluated as a Junk and belongs to Stonepeak Partners and TPG Inc., has made the highest default of $ 3.8 billion in loans and $ 1.9 billion in bonds. The company exchanged debt to deal with the problem with its debt that ends between 2025 and 2028.

Companies usually suggest debt exchanges – a kind of restructuring – to improve their liquidity, reduce their obligations, manage the upcoming debt expires and ultimately avoid bankruptcy. In such exchanges, the majority of businesses had gone, 13 the number, which defeated $ 20 billion bond payments and bonds. Several companies, such as Community Health Systems and All Day Acquisition LLC, had previously exploited the practice of out -of -court restructuring.

“Exchanges of problematic debt are peculiar, it is more difficult to predict and do not work most of the time,” Chursin notes. “There is a chance 50/50 for bankruptcy.”

Moody’s predicts that the constant consumer goods sector, which includes electric appliances and car companies, will show the largest number of payments next year, partly due to the pressure on duties. But regardless of the sector, low -credit businesses “remain particularly vulnerable to duty -related risks,” according to the house report.