Financial Times FT.com

Credit terms tied to companies’ risk

By Aline van Duyn in New York

Published: November 11 2008 23:38 | Last updated: November 11 2008 23:38

US and European companies renewing short-term credit facilities are being forced to accept terms that link interest payments to their creditworthiness.

In recent months, AT&T, Wal-Mart, Caterpillar, Halliburton, Nokia and Novartis have all renewed their short-term financing arrangements, including revolving credit facilities, and found that “relationship pricing” is no longer available.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this