Euler Hermes’ latest research finds that a positive global trend to strengthen corporate balance sheets and reduce gearing is masking a rise in leverage in vulnerable sectors and regions. Maxime Lemerle, Head of Sector Research at Euler Hermes, said: “Thanks to strong earnings growth, net indebtedness has been largely kept in check. However, diving under this calm surface reveals some bubbling hotspots of potential risks both for companies and their suppliers in a number of sectors and regions.” Euler Hermes found that the sectors most at risk include paper, transportation and textile, while Southern Europe was particularly vulnerable to over-leveraged corporates. To read Euler Hermes’ news release go to http://www.eulerhermes.com/mediacenter/news/Pages/Corporate-Debt-Hotspots-Bubbling-Under-A-Calm-Surface.aspx.