Series: Analytical Articles.
Author: Álvaro Menéndez and Maristela Mulino.
Topics: Economic situation | Spain | Financial analysis.
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Abstract
According to data from the Central Balance Sheet Data Office Quarterly Survey, non-financial
corporations continued to see an increase in activity, employment and ordinary profits in the first half of 2018, supporting a continued recovery in aggregate profitability levels. There was no significant change in debt ratios, while the debt burden continued to fall, reaching historic lows, indicating that financial pressure on the corporate sector is currently low. Nevertheless, the simulations included with this article reveal that certain segments of the corporate sector would be particularly vulnerable to rising borrowing costs.