Analysts urge investors to pay closer heed to risks of rising leverage

AS business rebounds with the receding of the Covid-19 pandemic, some companies are taking on more debt to grow their operations. But in an environment of rising interest rates, analysts said investors should watch for signs of potential stress.

Data compiled from Bloomberg for Singapore-listed companies with market capitalisations of S$500 million or more shows Wilmar International, ST Engineering and Olam Group among the counters with the highest leverage ratios as at the end of June.

All three companies had raised their leverage on a year-on-year basis.