BusinessCompany NewsCredit crunch getting even worse say FDs

Credit crunch getting even worse say FDs

Deloitte survey finds finance directors preparing for tougher market conditions as access to credit becomes harder

Finance directors say credit is more expensive and harder to secure and
predict the credit crunch is likely to worsen, according to a survey from
Deloitte published today.

Nearly one year after the credit crisis rocked global markets three-quarters
(77%) of 83 chief financial officers questioned in the quarterly survey, say
credit is hard to secure, up from 63% in March and 48% in September last year.

89% of CFOs say credit is costly, up sharply from 72% in March and 59% last
September. Only 1% believe credit is still cheap.

69% UK CFOs think credit conditions have deteriorated in the last three
months and two thirds 66% disagree with the view of US Treasury Secretary, Henry
Paulson, that the ‘worst of the credit crunch is likely to be behind us’.

CFOs are also less confident than the City about prospects for corporate
earnings, with 56% believing that corporate earnings in 2008 will grow more
slowly than the average 5.0% growth rate expected by City analysts. Only 6%
expect faster growth.

Margaret Ewing, Deloitte partner and vice chairman, said: “The squeeze on
liquidity is increasingly transmitting itself to the corporate sector through a
reduced supply and rising cost of credit.

Further reading:

Profit
warnings hit seven-year high

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

4m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

12m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor