Debt used to finance leveraged buyouts in Europe is at a greater threat of default as companies' cash to cover their obligations diminishes, Standard & Poor's said. Companies saw the cash-to-debt ratio fall in the first quarter to 2.2 times debt. The proportion had been 2.5 last year and 4 in 2003, S&P analysts said. Building-services company Coor Service Management Group of Stockholm, Sweden, has debt equivalent to 6.7 times its annual pre-EBITDA profits after it was acquired by the Cinven Group in an LBO.
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