'Zombie' companies are headed for a year of pain as rates move higher and access to credit gets cut off, think tank expert says

• "Zombie" companies are facing a year of pain ahead, according to think tank expert Sonya Gibbs.
• Gibbs pointed to higher interest rates, which could strain finances at overborrowed firms.
• But higher rates are necessary to correct major problems in the market, she added.

Indebted "zombie" companies are headed for a year of pain as financial conditions continue to tighten, according to one think tank expert. 

In a recent interview with Bloomberg TV, Sonja Gibbs, the head of sustainable finance at the Institute of International Finance, pointed to upcoming challenges stemming from higher interest rates in the market.