NEW YORK, May 2 (Reuters) - U.S. companies’ ability to raise cash to run their business improved to its strongest level since mid-2015 in April as defaults among riskier firms were limited due to an improving economy, a report from Moody’s Investors Service released late Monday showed.
The rating agency said its “Liquidity-Stress Index” fell to 4.9 percent last month, which was the lowest since July 2015. It was 5.3 percent in March.
The Moody’s index falls when corporate liquidity rises and it rises when liquidity condition deteriorates.
“Speculative-grade liquidity continues to keep defaults in check with a growing economy helping profits and a lack of meaningful maturity and covenant concerns over the next year,” Moody’s said in a statement. (Reporting by Richard Leong; Editing by Chizu Nomiyama)