2018 - 2 - 6 - S&P On US Maturity Wall

Credit Trends:
U.S. Refinancing Study--$4.4 Trillion

Of Rated Corporate Debt Is Scheduled
To Mature Through 2022
Global Fixed Income Research:
Diane Vazza, Managing Director, New York (1) 212-438-2760; diane.vazza@spglobal.com
Nick W Kraemer, FRM, Senior Director, New York (1) 212-438-1698; nick.kraemer@spglobal.com
Evan M Gunter, Director, New York (1) 212-438-6412; evan.gunter@spglobal.com
Research Contributor:
Abhik Debnath, CRISIL Global Analytical Center, an S&P Global Ratings affiliate, Mumbai
Table Of Contents
Overview Of Maturing Debt And Financing Conditions
Rising Rates Have Yet To Lead To Higher Corporate Funding Costs
Despite Tighter Monetary Policy, Issuance Surged In 2017
Moving The Maturity Wall
Nonfinancial Issuers Have Pushed Peak Maturities To 2022
Over A Third Of Nonfinancial Corporate Debt Is In The 'BBB' Category
The High Tech Sector Has The Most Nonfinancial Debt Maturing Through
2022, Offset By Overseas Cash To Repatriate
The Media And Entertainment, Retail And Restaurants, And Oil And Gas
Sectors Have The Most Speculative-Grade Debt Maturing Through 2022
Financial Services Maturities Steadily Decline After This Year
WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 1

THIS WAS PREPARED EXCLUSIVELY FOR USER JUDITH GOLDSTEIN.
NOT FOR REDISTRIBUTION UNLESS OTHERWISE PERMITTED.
Table Of Contents (cont.)
U.S. Corporate Rated Debt Totals
Data Approach
Related Research

Credit Trends:
U.S. Refinancing Study--$4.4 Trillion Of Rated
Corporate Debt Is Scheduled To Mature Through
2022
S&P Global Fixed Income Research estimates that $4.4 trillion of U.S. corporate debt rated by S&P Global Ratings will
mature between Jan. 1, 2018, and Dec. 31, 2022. Annual maturities for U.S. corporate debt (from financial and
nonfinancial companies) are scheduled to rise until 2022, when a peak of $1.04 trillion is set to mature.
While the majority of the maturing rated debt is investment grade (rated 'BBB-' or higher), $1.34 trillion in
speculative-grade (rated 'BB+' or lower) corporate debt in the U.S. is set to mature by year-end 2022, and we consider
this debt to be at higher risk of refinancing. Most of the speculative-grade debt is from nonfinancial issuers, and the
sectors with the highest amounts of the lowest-rated debt (rated 'B-' or lower) set to mature over the next five years are
media and entertainment, retail and restaurants, and oil and gas.
Overview
• About $4.4 trillion in rated U.S. corporate debt is scheduled to mature through 2022; the annual amount
maturing is set to rise from $631.2 billion in 2018 to a peak of $1.04 trillion in 2022.
• Nonfinancial corporate debt accounts for 75% of the maturing total. The high technology sector has the
highest amount of nonfinancial debt maturing through 2022, while the media and entertainment sector has the
highest amount of speculative-grade debt.
• Financial services companies face higher near-term maturities than nonfinancial issuers. Short- and
medium-term debt make up a substantial portion of the $247 billion in rated debt from financial companies
that is scheduled to mature in 2018, and annual maturities are set to decline after 2018.
Financing conditions were accommodative for corporate issuers in 2017, enabling both investment- and
speculative-grade companies to push maturities to later years. With financing conditions expected to remain largely
stable for U.S. corporate issuers in 2018, the maturity schedule should be manageable. However, with tightening
monetary policy and rising interest rates, corporate funding costs appear poised to rise over the coming years.
Furthermore, significant changes to the business environment are on the horizon, including the implementation of the
recent $1.5 trillion Tax Cuts And Jobs Act and the potential renegotiation of NAFTA, either of which could lead to
periods of more volatile credit or funding conditions as companies adjust.

Credit Trends: U.S. Refinancing Study--$4.4 Trillion Of Rated Corporate Debt Is Scheduled To Mature Through
2022
Chart 1
Overview Of Maturing Debt And Financing Conditions

For this study, we looked at maturing investment-grade and speculative-grade debt issues from nonfinancial corporate
and financial services issuers based in the U.S. (including the tax havens of Bermuda and the Cayman Islands). U.S.
companies have $4.4 trillion in rated debt scheduled to mature through 2022. Nearly three-quarters of this debt is from
nonfinancial issuers, and 63% of this nonfinancial debt is investment grade. Financial services companies have $247
billion scheduled to mature in 2018; afterward, annual maturities are set to decline gradually through 2021, when $202
billion is set to mature. In contrast, nonfinancial corporate debt maturities climb from $384 billion in 2018 to a peak of
$836 billion in 2022 (see table 1).
Table 1
Maturing Corporate Debt--U.S. Companies
(Bil. $) 2018 2019 2020 2021 2022 Total
Financial 246.9 244.9 219.4 201.8 202.3 1,115.2
Investment grade 231.7 224.4 197.5 179.0 169.8 1,002.5
Speculative grade 15.1 20.4 21.9 22.7 32.5 112.7
Nonfinancial 384.4 534.2 698.8 833.1 836.2 3,286.7

2022
Table 1
Maturing Corporate Debt--U.S. Companies (cont.)
(Bil. $) 2018 2019 2020 2021 2022 Total
Speculative grade 78.2 151.3 235.1 360.9 397.6 1,223.2
Total investment grade 537.8 607.3 661.2 651.2 608.5 3,066.0
Total speculative grade 93.4 171.7 257.0 383.7 430.1 1,335.9
Total 631.2 779.1 918.2 1,034.9 1,038.5 4,401.9
Note: Includes bonds, loans, and revolving credit facilities rated by S&P Global Ratings. Foreign currencies are converted to U.S. dollars at the
exchange rate on the close of business on Dec. 31, 2017. Data as of Dec. 31, 2017. Source: S&P Global Fixed Income Research.
Rising Rates Have Yet To Lead To Higher Corporate Funding Costs

While corporate funding conditions should be sufficient for U.S. companies to meet these pending maturities, risks
remain that could lead to higher funding costs or less available credit for companies. The Federal Reserve continues to
tighten monetary policy, and S&P Global economists forecast three federal funds rate hikes of 25 basis points (bps) in
2018, even as the Fed continues to reduce its balance sheet.
Despite tightening monetary policy in 2017, corporate bond spreads narrowed and yields fell during the year.
However, since reaching a low of 2.06% in September, 10-year Treasury yields have been rising. With this rise,
corporate bond yields for both investment- and speculative-grade bonds have also risen modestly over the same
period. From Sept. 6, 2017, through Jan. 1, 2018, the 10-year Treasury yield rose by 35 bps to 2.41%, while the
investment- and speculative-grade yields rose by 11 bps and 9 bps, respectively (see chart 2). Yields have continued to
rise in January 2018, with the 10-year Treasury yield reaching 2.7%, its highest level since 2014.
Although the rise in corporate bond yields from September through December was modest, we consider a
sharper-than-expected rise in inflation or interest rates to be a potential risk for corporate funding, especially for
speculative-grade companies that have fewer sources of funding available. So far, the current cycle of monetary policy
tightening has been largely anticipated by the markets and uneventful. However, with a new chair and several
rotations on the Board of Governors, the Fed could show more hawkish tendencies this year. A sharper-than-expected
rate hike or a surprise policy move could lead to an outsize market reaction, especially given the lack of volatility that
has pervaded markets over the past year.

2022
Chart 2
Mitigating this risk, however, the current corporate maturity wall leaves a multiyear window before the largest sums
come due, which should help companies' ability to contend with a temporary stretch of market volatility. Additionally,
U.S. economic growth continues to support funding conditions, and S&P Global economists forecast that the U.S. real
GDP growth rate will rise to 2.8% in 2018, followed by 2.2% growth in 2019.
While the recently passed tax reform package provides a stimulus that contributes to the expected boost in real GDP
growth in 2018, companies' demand for funding over the longer term could be influenced by changes in the corporate
tax code, such as the lowering of the top corporate tax bracket to 21%, the move to a territorial tax system, and the
one-time repatriation tax. These changes should free up future cash flows, and while companies have had little
incentive to reduce leverage amid currently low interest rates, we foresee companies directing increased cash flows to
lowering their debt if rates rise appreciably.
Despite Tighter Monetary Policy, Issuance Surged In 2017

In 2017, U.S. companies benefited from accommodative funding conditions, refinancing and prefinancing debt
obligations and extending maturities to later years. Issuance of bonds rated by S&P Global Ratings increased by 12%
in 2017 to $1.3 trillion, with increases from both financial and nonfinancial sectors. Much of the newly issued debt was

2022
investment grade ($1.1 trillion), and this investment-grade volume increased by 10% from the 2016 total. Over the
same period, speculative-grade issuance surged 26% to $236 billion, marking the first year-over-year increase in
speculative-grade bond issuance since 2012 (see chart 3).
Chart 3
Meanwhile, issuance volume for leveraged loans surged to its highest level on record in the U.S., boosted by demand
from mutual funds, exchange-traded funds, and collateralized loan obligations. With these favorable conditions in the
financing markets, companies have been able to refinance near-term maturities at favorable terms and rates, and near
40% of the leveraged loan issuance in 2017 was used for refinancing, according to S&P Global Market Intelligence's
Leveraged Commentary & Data.
Moving The Maturity Wall

Amid these favorable financing conditions, U.S. companies have been able to push out the rated debt maturity wall. In
our recent report "U.S. Refinancing Study--$4.67 Trillion In Rated Corporate Debt Will Mature Through 2022,"
published Aug. 8, 2017, with data as of June 30, 2017, we found that annual maturities were set to rise to a peak of
$1.06 trillion in 2021. In our current estimate, we find that the peak maturity year has been pushed back by one year to
2022, when $1.04 trillion in rated debt from financial and nonfinancial companies is set to mature.

2022
Since June 30, 2017, the amount of debt set to mature in 2018-2020 has declined by 5%, while the debt set to mature
in 2021-2022 has risen by 6% (see chart 4). Most of the maturing debt remaining for 2018-2019 is investment grade,
and financial services companies have a higher proportion of debt maturing in these years than in later years.
Chart 4
Nonfinancial Issuers Have Pushed Peak Maturities To 2022

Nonfinancial companies in the U.S. have $3.3 trillion in rated debt that is scheduled to mature through 2022. The peak
maturity year for U.S. nonfinancial corporate debt has been pushed back by one year since our study with data as of
June 30, 2017, to 2022 (when $836 billion is set to mature) (see chart 5). Also over this period, the amount of
nonfinancial debt set to mature from 2018-2019 has been reduced by 10% as companies have refinanced debt with
new issues maturing in later years. With companies rolling maturities to later years, the amount of debt set to mature
in 2022 has grown by 15% over the past six months.

2022
Chart 5
Much of the reduction in U.S. nonfinancial corporate debt maturities in 2018 and 2019 has been from
speculative-grade companies. The amount of nonfinancial speculative-grade debt maturing in 2018 and 2019 has been
reduced by 23% and is now down to $230 billion. Over the past six months, the peak maturity year for U.S.
nonfinancial speculative-grade debt has also been pushed to 2022, and the amount of debt set to mature in that year
has grown by 6% (to $397.6 billion) (see chart 6).
This extension of the maturity wall provides companies with a longer window of opportunity in which to secure
funding to meet refinancing demands. When companies have more time before debt comes due, they are better
positioned to weather temporary periods of illiquidity in the market.

2022
Chart 6
Over A Third Of Nonfinancial Corporate Debt Is In The 'BBB' Category

About 63% of nonfinancial corporate debt maturing through 2022 is investment grade, and 37% is speculative grade.
By rating category, the largest share of nonfinancial corporate debt is in the 'BBB' category, which accounts for 38%
($1.26 trillion) (see chart 7). About $498 billion of this debt is rated 'BBB-', which is the lowest investment-grade rating.
This is notable because an issuer downgraded to speculative grade would likely face higher funding costs and more
restrictive terms on its debt.

2022
Chart 7
While the largest portion of rated nonfinancial debt (by dollar amount) is investment grade in the U.S., the majority of
rated issuers (by issuer count) are speculative grade. The share of speculative-grade nonfinancial issuers has been
rising steadily in the U.S. over the past decades. By issuer count, speculative-grade companies now account for 66% of
U.S. nonfinancial issuers, up from 62% in 2007 and from 44% in 1997.
Nonetheless, many of the largest companies in the U.S. are investment grade, and these account for a larger absolute
amount of debt than do speculative-grade companies. For example, several of the nonfinancial issuers with the most
debt maturing through 2022 are rated in the 'BBB' category, including Ford Motor Co. ('BBB'), AT&T Inc. ('BBB+'),
General Motors Co. ('BBB'), and Verizon Communications Inc. ('BBB+').
After the 'BBB' category, the next two largest categories of U.S. nonfinancial corporate debt set to mature through
2022 are 'A' and 'BB', each accounting for about 17% of the debt maturing through 2022. Nearly $572 billion in 'A'
category debt is scheduled to mature through 2022. The 'A' category accounted for 15% of the rated nonfinancial debt
maturing through 2022 in our study with data as of June 30, 2017, but the size of this category has grown since the
downgrade of General Electric Co. to 'A' from 'AA-' on Dec. 4, 2017. General Electric was previously the nonfinancial
issuer with the most 'AA' category debt. Meanwhile, the amount of debt in the 'BB' category has fallen slightly to 17%
(from 18% in June).

2022
The majority of speculative-grade nonfinancial debt maturing through 2022 consists of leveraged loans and revolving
credit facilities (59%), while investment-grade debt consists primarily of bonds and notes (74%) (see table 2). A key
difference between these two types of debt is that term loans typically have floating interest rates, and the yield on
these instruments stands to rise with interest rates. Additionally, term loans tend to have shorter maturities, and this
debt must be refinanced more often. While these features have helped to bolster investor demand for loans as the Fed
has begun to raise interest rates, it could also lead to higher funding costs for companies as rates continue to rise.
Table 2
Rated Nonfinancial Corporate Debt Maturities
(Bil. $) 2018 2019 2020 2021 2022 Total
Loan/revolver 41.3 80.9 141.0 163.5 117.6 544.4
Bond/note 264.8 301.9 322.7 308.7 321.0 1,519.2
Speculative grade 78.2 151.3 235.1 360.9 397.6 1,223.2
Loan/revolver 33.3 87.3 139.1 230.2 234.0 723.9
Bond/note 44.9 64.0 96.1 130.7 163.6 499.3
Total loan/revolver 74.6 168.2 280.1 393.7 351.6 1,268.3
Total bond/note 309.7 366.0 418.8 439.4 484.6 2,018.5
Grand total 384.4 534.2 698.8 833.1 836.2 3,286.7
Note: Includes bonds, loans, and revolving credit facilities rated by S&P Global Ratings. Data as of Dec. 31, 2017. Source: S&P Global Fixed
Income Research.
As maturities for speculative-grade nonfinancial debt have been extended since this past June, the median time to
maturity has been extended to 4.6 years from 4.5 years. Despite this extension, we consider the debt at the lowest
ratings of 'B-' and below to face the highest refinancing risk. Funding conditions could become more volatile for debt
rated at these low levels if funding liquidity falters or if rising interest rates or investor risk aversion leads to a sharp
increase in corporate funding costs. About $292 billion of speculative-grade nonfinancial debt rated 'B-' or lower is
scheduled to mature through 2022; while just a small portion of this ($19.3 billion) matures in 2018 (down from $28.7
billion as of June 30, 2017), maturities rise to $51.7 billion in 2019 (see chart 8).

2022
Chart 8
The High Tech Sector Has The Most Nonfinancial Debt Maturing Through
2022, Offset By Overseas Cash To Repatriate
Among nonfinancial sectors, the high technology sector has the most debt set to mature through 2022, with $413
billion. The majority of the maturing debt in this sector (73%) is investment grade, and some of the top issuers include
Apple Inc. ('AA+'), International Business Machines Corp. ('A+'), Oracle Corp. ('AA-'), Cisco Systems Inc. ('AA-'), and
Dell Technologies Inc. ('BB+'). Although the issuer credit rating for Dell is speculative grade, the company's debt
maturing through 2022 consists of investment-grade-rated term loans and revolvers. The peak maturity year for the
high technology sector is 2021, when $126.6 billion is scheduled to mature, which is the highest annual total for
maturing debt from a nonfinancial sector through 2022 (see table 3).
Table 3
Nonfinancial Corporate Maturities By Sector
(Bil. $)
--Investment grade-- --Speculative grade--
Sector 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Total
Aerospace & defense 4.4 4.6 11.6 7.0 6.9 0.1 1.7 6.1 11.0 9.1 62.3

2022
Table 3
Nonfinancial Corporate Maturities By Sector (cont.)
Auto 19.4 23.5 30.8 27.2 14.5 0.7 3.0 1.1 12.9 9.8 142.8
Capital goods 35.9 33.1 37.8 30.0 29.0 0.7 3.0 9.9 11.0 13.0 203.4
Consumer products 30.6 39.2 59.3 58.0 46.4 2.5 8.7 15.4 30.4 39.4 329.9
CP&ES 9.8 25.6 19.6 31.0 25.9 3.7 3.3 17.3 14.6 24.1 174.9
FP&BM 1.5 1.7 2.6 4.0 3.2 0.9 1.0 1.8 6.9 9.7 33.3
Health care 29.8 41.2 37.6 29.8 35.6 3.8 14.0 10.7 35.9 39.5 278.0
High tech 38.3 62.7 52.9 93.5 54.6 6.1 9.2 28.9 33.1 33.3 412.6
Home/RE 10.0 10.5 13.7 25.3 23.0 4.9 8.4 6.8 7.2 10.0 119.8
Media & entertainment 15.3 15.9 39.1 30.2 25.4 8.0 24.8 38.9 67.9 87.9 353.4
Metals, mining & steel 0.8 1.7 4.2 3.0 2.7 8.1 6.1 12.2 11.4 9.3 59.4
Oil & gas 23.4 17.7 23.4 18.1 28.4 9.9 23.9 24.9 30.2 30.6 230.7
Retail/restaurants 15.1 25.5 22.1 23.6 37.5 5.6 13.0 18.1 24.6 23.2 208.3
Telecom 18.1 23.6 39.1 37.5 45.9 7.1 11.8 15.8 32.5 30.8 262.2
Transportation 10.9 13.1 24.0 13.4 18.0 3.0 5.5 10.2 11.6 16.1 125.9
Utilities 42.8 43.5 46.0 40.8 41.5 13.2 13.9 17.0 19.5 11.7 289.8
Grand total 306.1 382.9 463.7 472.2 438.6 78.2 151.3 235.1 360.9 397.6 3,286.7
Note: Includes bonds, loans, and revolving credit facilities rated by S&P Global Ratings. CP&ES--Chemicals, packaging, and environmental
services. FP&BM--Forest products and building materials. Home/RE--Homebuilders and real estate companies. Data as of Dec. 31, 2017.
Source: S&P Global Fixed Income Research.
Although the high technology sector has the largest amount of nonfinancial corporate debt maturing through 2022,
many companies in this sector are also among those with the highest foreign cash holdings, and following the passage
of the Tax Cuts And Jobs Act, corporations have a one-time repatriation tax on deferred profits.
In our study "Tax Reform Will Likely Have A Mixed But Modest Impact On U.S. Corporate Bond Issuance," published
Jan. 11, 2018, we examined the 15 U.S. nonfinancial companies with the highest offshore cash balances. Eight of these
15 companies were from the high technology sector, and these companies had a combined $563 billion in overseas
cash, more than the total amount of high technology debt that is scheduled to mature through 2022. These companies
included several of the issuers with the highest amounts of debt scheduled to mature through 2022, including Apple
Inc., Cisco Systems, and Oracle Corp. As companies repatriate this overseas cash, it should provide an additional
supply of funding with which to pay down maturing debt.
The Media And Entertainment, Retail And Restaurants, And Oil And Gas
Sectors Have The Most Speculative-Grade Debt Maturing Through 2022
The media and entertainment sector has the second-highest amount of nonfinancial debt scheduled to mature through
2022, with $353.4 billion, and the highest amount of speculative-grade debt scheduled to mature through 2022, with
$228 billion. About 64% of the sector's rated debt maturing through 2022 is speculative grade, which leaves the sector
more likely to face refinancing stress than the high technology sector. Total speculative-grade maturities in media and
entertainment peak in 2022, when $87.9 billion is set to mature. Furthermore, the media and entertainment sector has
the highest amount of debt rated 'B-' or lower that is set to mature through 2022, with $47.8 billion. Maturities of debt

2022
rated 'B-' or lower rise swiftly to $14.2 billion in 2019 from just $1.8 billion in 2018.
The media and entertainment issuer with the most distressed debt set to mature through 2022 is iHeartMedia Inc. The
issuer credit rating on iHeartMedia Inc. was lowered to 'SD' (selective default) on Feb. 1, 2018, after its subsidiary
iHeartCommunications Inc. missed an interest payment, and the company is currently in discussion with lenders and
bondholders to restructure its balance sheet (see "iHeartMedia Inc. And Subsidiary Downgraded To 'SD' On Missed
Interest Payment," Feb. 1, 2018). As of Dec. 13, 2017, iHeartMedia Inc. had the second-highest amount of distressed
debt outstanding ($9.2 billion). Distressed issues are those with option-adjusted composite spreads of more than 1,000
bps above U.S. Treasuries, and these issues are viewed by the market as having a high risk of default.
The retail and restaurants sector has the second-highest amount of debt rated 'B-' or lower maturing through 2022,
with $44 billion. This sector has $3.7 billion scheduled to mature this year, and maturities are set to rise sharply to
$10.3 billion in 2019. The retail sector has been experiencing deteriorating credit conditions and faced credit tightening
over the past year as companies adjusted to shifting consumer demands and as brick-and-mortar retailers faced rising
competition from online competitors.
In 2017, the negative bias (the percentage of issuer ratings that have negative outlooks or are on CreditWatch with
negative implications) for the retail and restaurants sector rose to 32% at year-end from 22% at the beginning of the
year. Additionally, the U.S. retail and restaurants sector had the highest distress ratio (defined as the number of
distressed credits divided by the total number of speculative-grade issues) of any sector for much of the year.
Considering this elevated downgrade and default potential, issuers of the lowest-rated debt in this sector may have
limited refinancing options for the debt maturing over the next two years.
At the end of 2017, only the oil and gas sector had a negative bias that was slightly higher (at 34%) than that of the
retail and restaurants sector. Nonetheless, the oil and gas sector's negative bias fell by more than 15 percentage points
in 2017 as crude oil prices held above $45 per barrel for most of the year. The oil and gas companies with the highest
amounts of debt maturing through 2022 include several investment-grade companies from the integrated oil and gas
sector, such as Chevron Corp. ('AA-') and Exxon Mobil Corp. ('AA+'), as well as speculative-grade exploration and
production companies, such as Chesapeake Energy Corp. ('B-'). In January 2017, Chesapeake was upgraded to 'B-'
from 'CCC+' after the company addressed near-term maturities and strengthened its liquidity profile.
The oil and gas sector has the second-highest amount of speculative-grade debt set to mature through 2022, with $120
billion, and just over a third of this debt is rated 'B-' or lower. The sector has $4.3 billion in debt rated 'B-' or lower that
is scheduled to mature in 2018, and maturities rise modestly to $5.1 billion in 2019 before jumping to $12.7 billion in
2020. S&P Global Ratings projects that the West Texas Intermediate crude oil price will remain range-bound during
the year at about $50 per barrel, which should boost credit stability and funding availability for oil and gas companies
overall.
Financial Services Maturities Steadily Decline After This Year

Financial services companies have nearly $1.12 trillion in rated debt maturing through 2022. These maturities peak this
year, when $246.9 billion is set to come due. After 2018, annual maturities are set to gradually decline, falling by 1% in

2022
2019 and by a further 10% in 2020. Compared with nonfinancial issuers, financial companies tend to have a higher
share of debt maturing in the near term.
In recent years, U.S. banks may have been reluctant to issue long-term debt as they awaited clarification from the
Federal Reserve on how long-term debt would be treated as total loss-absorbing capital (TLAC). After the Fed put in
place its final TLAC rule in December 2016, which includes a 50% haircut for long-term debt maturing within one to
two years, U.S. banks issued 43% less debt with maturities of one to three years in 2017 than in 2016, while bond
issuance with maturities of three to seven years increased by 33%. With this recent issuance, the amount of
investment-grade debt from financial services companies scheduled to mature in 2022 has nearly doubled over the
past year.
When we compare our current estimate of annual debt maturities from financial services companies with our estimate
from Dec. 31, 2016, we find that the largest increase is for debt maturing in 2022, which has increased by 89% to
$202.3 billion. Meanwhile, maturities in 2018 are modestly lower than our estimate from June 2017 (down 1%),
although we expect that some of the debt remaining in this year may already have been accommodated by the credit
market, given normal data-reporting lags (see chart 9).
Chart 9
The majority of this financial services debt is investment grade; just 10% is speculative grade. By rating, the largest

2022
share of the debt is in the 'A' category, at 43%, followed by the 'BBB' category, at 38% (see chart 10). The 'A' category
grew to surpass the 'BBB' category in size in the second half of 2017, following the raising of the long-term issuer credit
rating on Bank Of America Corp. to 'A-' from 'BBB+' on Nov. 22, 2017. Bank of America is one of the U.S. financial
services companies with the highest amounts of debt scheduled to mature through 2022, and this upgrade shifted
enough rated debt into the 'A' category that it now exceeds the 'BBB' category in size.
Chart 10
About 84% of the debt from financial services companies that is scheduled to mature through 2022 is from the
financial institutions sector, which includes banks as well as nonbank financial institutions. In addition to Bank of
America, the financial services companies with the most debt scheduled to mature through 2022 include the following
banks: The Goldman Sachs Group Inc. ('BBB+'), JPMorgan Chase & Co. ('A-'), Citigroup Inc. ('BBB+'), and Morgan
Stanley ('BBB+').
Insurance companies account for a smaller share of the financial services debt maturing through 2022, with 16% (see
table 4). In part, insurance companies have less debt maturing over the next five years because they have a longer
maturity profile than financial institutions. Currently outstanding investment-grade instruments from the insurance
sector have a median maturity of 6.9 years, longer than the median maturity of 6.1 years for financial institutions.
However, now that the Federal Reserve has released its guidance on the treatment of long-term debt as total

2022
loss-absorbing capital, we expect that the median maturity for debt from financial institutions will slowly increase.
Table 4
Maturing Financial Services Corporate Debt
(Bil. $) 2018 2019 2020 2021 2022 Total
Financial institutions 199.2 194.7 167.1 154.4 141.7 857.1
Insurance 32.6 29.7 30.3 24.6 28.2 145.4
Speculative grade 15.1 20.4 21.9 22.7 32.5 112.7
Financial institutions 12.6 17.4 18.2 13.0 21.7 82.8
Insurance 2.6 3.0 3.7 9.7 10.8 29.9
Financial institutions (total) 211.7 212.1 185.4 167.4 163.3 939.9
Insurance (total) 35.1 32.8 34.0 34.3 39.0 175.3
Grand total 246.9 244.9 219.4 201.8 202.3 1,115.2
Note: Includes bonds, loans, and revolving credit facilities rated by S&P Global Ratings. Data as of Dec. 31, 2017. Source: S&P Global Fixed
Income Research.
Financial services companies have $113 billion in speculative-grade debt that is scheduled to mature through 2022.
Annual maturities for speculative-grade financial services debt rise from $15.1 billion in 2018 to a peak of $32.5 billion
in 2022. Given that very few banks are rated speculative grade, this debt is primarily from nonbank financial
institutions, including finance companies, brokerages, and asset managers, as well as some insurance brokers and
third-party administrators.
The largest share of speculative-grade debt from financial services companies is rated in the 'BB' category, and the
largest issuers include nonbank financial institutions such as Ally Financial Inc. ('BB+'), Navient Corp. ('BB-'), and
Icahn Enterprises L.P. ('BB+'). Just $14.4 billion in financial services debt rated 'B-' or lower is set to mature through
2022, and this debt is largely from insurance brokers, finance companies, and insurance third-party administrators.
Financial services companies benefited from accommodative financing conditions in 2017, and we expect that the
environment will remain supportive in 2018. Through the second half of 2017, credit spreads narrowed for investment-
and speculative-grade financial services companies even as the Federal Reserve tightened monetary policy. The
spread on 'A' category bonds from financial issuers narrowed by 17 bps during the second half of the year, to 95 bps as
of Jan. 1, 2018, while the 'BBB' spread narrowed by 29 bps to 141 bps. Spreads for speculative-grade financial issuers
tightened by 38 bps during the second half of the year, to 323 bps as of Jan. 1, 2018 (see chart 11).

2022
Chart 11
In 2017, rated bond issuance from financial services companies rose by 11% to $497 billion. Most of the issuance was
investment grade, up 9% to $450 billion, while speculative-grade financial issuance increased by 27% to $46 billion.
For 2018, we expect financial services issuance to increase by 3%-7% globally, with U.S. banks contributing to the
increase as they issue long-term debt to meet TLAC rules.
U.S. Corporate Rated Debt Totals

For this study, we included the rated debt instruments of U.S. companies and their foreign subsidiaries and excluded
debt instruments that were in default. Our dataset consists of approximately $9.01 trillion in rated corporate bonds,
loans, and revolving credit facilities outstanding as of Dec. 31, 2017. S&P Global Ratings rates about 72% of this debt
investment grade (see table 5). Meanwhile, the U.S. speculative-grade market is also substantial, with $2.53 trillion in
rated debt, nearly half of which consists of loans and revolvers, while the other half consists of bonds and notes.
Table 5
Total Debt Amounts By Rating
--Debt amount (bil. $)-- --Percentage of total (%)--
Rating category Financial Nonfinancial Total Financial Nonfinancial Total

AAA 0.0 85.1 85.1 0 1 1

2022
Table 5
Total Debt Amounts By Rating (cont.)
--Debt amount (bil. $)-- --Percentage of total (%)--
Rating category Financial Nonfinancial Total Financial Nonfinancial Total

AA 144.2 473.6 617.8 2 5 7
A 919.9 1,371.8 2,291.7 10 15 25
BBB 870.3 2,616.4 3,486.7 10 29 39
BB 100.0 1,071.4 1,171.5 1 12 13
B 76.2 1,011.1 1,087.3 1 11 12
CCC and below 12.8 260.1 272.9 0 3 3
Investment grade 1,934.4 4,546.9 6,481.3 21 50 72
Speculative grade 189.0 2,342.7 2,531.6 2 26 28
Total 2,123.4 6,889.5 9,012.9 24 76 100
Note: Includes bonds, notes, loans, and revolving credit facilities rated by S&P Global Ratings. Foreign currencies are converted to U.S. dollars at
the exchange rate on the close of business on Dec. 31, 2017. Data as of Dec. 31, 2017. Source: S&P Global Fixed Income Research.
Data Approach
We investigated the potential refunding needs of financial and nonfinancial corporate debt rated by S&P Global
Ratings in our analysis.
In the U.S. region (including Bermuda and the Cayman Islands), we included the rated debt of all U.S. companies and
their foreign subsidiaries. We counted the debt of all of these companies regardless of the currency or market in which
the debt was issued. We converted any non-U.S.-dollar-denominated debt to U.S. dollars based on the end-of-day
exchange rates on Dec. 31, 2017. We did not include in our totals foreign companies issuing debt in the U.S. market or
foreign companies issuing debt through their U.S.-based subsidiaries, unless otherwise noted.
The issue types include loans, revolving credit facilities, bank notes, bonds, debentures, convertible bonds, covered
bonds, intermediate notes, medium-term notes, index-linked notes, equipment pass-through certificates, and preferred
stock. In the case of revolving credit facilities, the amount usually represents the original facility limit, not necessarily
the amount that has been drawn. Debt amounts are tallied as the face value of outstanding rated debt instruments. We
excluded individual issues that are not currently rated at the instrument level, as well as instruments from issuers
currently rated 'D' (default) or 'SD' (selective default).
We aggregated the data by issue-level credit rating. We also aggregated sector-specific data according to the subsector
of the issuer. The financial services sector is defined as all banks, brokers, insurance companies, asset managers,
mortgage companies, and other financial institutions. We aggregated debt issued by financial arms of nonfinancial
companies with the sector of their corporate parents. For the purposes of this study, the $400 million in maturing debt
from the diversified sector has been aggregated with the utilities sector. We also excluded government-sponsored
agencies such as Fannie Mae and Freddie Mac, project finance, and public finance issuers.

2022
Related Research
• Global Refinancing Study--$10.23 Trillion In Rated Corporate Debt Is Scheduled To Mature Through Year-End
2022, Jan. 26, 2018
• Global Issuance And Financing Conditions: Bond Issuance Is Expected To Decline By 0.4% To $6.2 Trillion In 2018,
Jan. 17, 2018
• Tax Reform Will Likely Have A Mixed But Modest Impact On U.S. Corporate Bond Issuance, Jan. 11, 2018
• Distressed Debt Monitor: The Oil And Gas Sector Leads A Drop In The U.S. Distress Ratio, Jan. 2, 2018
• Global Refinancing Study--$10.69 Trillion In Rated Corporate Debt Is Scheduled To Mature Globally Through
Year-End 2022, July 26, 2017
• Credit FAQ: Assessing The Final U.S. Total Loss-Absorbing Capacity Rule And Its Impact On Bank Ratings, Feb. 13,
2017

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2018 - 2 - 6 - S&P On US Maturity Wall

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2018 - 2 - 6 - S&P On US Maturity Wall

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Credit Trends:

U.S. Refinancing Study--$4.4 Trillion

Overview Of Maturing Debt And Financing Conditions

Rising Rates Have Yet To Lead To Higher Corporate Funding Costs

Despite Tighter Monetary Policy, Issuance Surged In 2017

Moving The Maturity Wall

Nonfinancial Issuers Have Pushed Peak Maturities To 2022

Over A Third Of Nonfinancial Corporate Debt Is In The 'BBB' Category

Financial Services Maturities Steadily Decline After This Year

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 1

U.S. Corporate Rated Debt Totals

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 2

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 3

Overview Of Maturing Debt And Financing Conditions

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 4

Rising Rates Have Yet To Lead To Higher Corporate Funding Costs

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 5

Despite Tighter Monetary Policy, Issuance Surged In 2017

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 6

Moving The Maturity Wall

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 7

Nonfinancial Issuers Have Pushed Peak Maturities To 2022

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 8

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 9

Over A Third Of Nonfinancial Corporate Debt Is In The 'BBB' Category

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 10

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 11

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 12

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 13

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 14

Financial Services Maturities Steadily Decline After This Year

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 15

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 16

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 17

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 18

U.S. Corporate Rated Debt Totals

Rating category Financial Nonfinancial Total Financial Nonfinancial Total

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 19

Rating category Financial Nonfinancial Total Financial Nonfinancial Total

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 20

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 21

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT FEBRUARY 6, 2018 22

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