www.mediafax.ro/economic/companiile-europene-se-im

European companies are facing rising borrowing costs due to increasing government debt and competition for financing. Analysts from Goldman Sachs warn that firms with high debt or limited resources will be most affected. The cost of borrowing has risen significantly, with solid companies now facing rates of 4.4% and riskier firms at 7%. This increase is impacting profits, with interest expenses rising from 1.25% to 1.85% of sales for companies in the Stoxx Europe 600 index. Nearly half of these companies' debts may be affected by rising interest rates in the near future. Despite these challenges, Goldman Sachs does not foresee a major financial crisis, as falling commodity prices and potential interest rate cuts could alleviate some pressures.