BusinessCorporate FinanceCFOs prepared to meet credit crunch head on

CFOs prepared to meet credit crunch head on

Deloitte’s latest research shows more CFOs than ever are prepared to meet the credit crunch head on

Most
chief
financial officers
(CFOs), at 58%, among some of UK’s major companies now
believe the credit crisis will adversely affect their businesses in 2008 – a
significant deterioration on September, when 42% of CFOs expected a negative
impact.

But the CFO survey also suggests most major corporates are well placed to
meet scarcer and more expensive bank credit head on – they have internal and
external financial resources available to draw on in a prolonged credit squeeze.

In all, 52% of CFOs said they were optimistic about their ability to find
alternatives to bank borrowing, such as capital markets debt and public and
private equity. In addition, a vast majority, at 95%, said they had additional
financial resources such as undrawn facilities, cash and saleable assets, which
could be used to fund the business over the next 12 months, should the need
arise.

Moreover, two-thirds of CFOs said they did not need to undertake any
significant refinancing of debt or bank credit for more than a year and some had
no near-term refinancing needs in the next two years.

Further reading:

Financial power list 2008

Annual reports face harsher auditor scrutiny

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