Default risks loom for nearly $2 trillion of junk-rated debt as US companies hit with higher interest rates

• Default and refinancing risks are climbing for US companies over the next several years, Moody's said.
• Junk-rated firms have $1.87 trillion in debt maturing over the next five years.
• Strategists said speculative-grade credit faces more pain amid higher rates and tighter financial conditions. 

Non-investment grade US companies face growing refinancing and default risks with interest rates expected to stay high and financial conditions for borrowers tightening, according to Moody's Investors Service.

The ratings agency says about $1.87 trillion of junk-rated debt is maturing between 2024 and 2028. That signifies a 27% jump from the $1.47 trillion recorded in last year's study for 2023-2027.