Corporate debt

Corporate debt refers to the financial obligations a company takes on through various forms of borrowing. This can include issuing bonds, taking out loans, and other credit instruments to fund operations, expand business capabilities, or refinance existing debts. Managing corporate debt effectively is crucial for a company's financial health, as it impacts credit ratings, interest expenses, and overall financial stability. The strategic use of debt can enhance growth opportunities, while excessive or poorly managed debt can lead to financial distress or insolvency. Investors and stakeholders often scrutinize a company's debt levels to gauge its risk and long-term viability.