Financial Times FT.com

On London: Fickle investors shun debt-laden stocks

By Neil Hume

Published: March 7 2008 17:26 | Last updated: March 7 2008 17:26

What a difference a year makes. Twelve months ago companies were under pressure from investors to take on debt and gear up their balance sheets. Fast-forward to 2008 and investors are fleeing stocks with high debt levels.

The worry is that these companies will struggle to refinance debt or that the economic slowdown will dent their ability to meet interest payments and keep banking covenants.

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