Deposits have become dearer and banks are shrinking their balance-sheets to meet debt redemptions.
N.A.I. needs to sell to meet debt covenants, but a massive sale of Viacom stock depresses its price.
But tax revenues remain weak, making it hard to pay for government programs and meet debt payments.
But I.S.S. ultimately urged shareholders to back the transaction, supporting Dynegy's arguments that without the Blackstone deal, the company will be hard-pressed to meet debt payments.
The default rate, which measures the percentage of companies with "junk" credit ratings that failed to meet debt obligations, reached its peak in November 2009.
"However," Mr. Matasar wrote, "N.Y.L.S. never promised (nor needed to promise) anyone that it would increase enrollment to meet debt service obligations".
All three of Iceland's top banks collapsed within days of each other in 2008, unable to meet debt repayments as credit markets dried up.
Standard & Poor's lowered Bayer's long-term debt to A from A+, on questions about the deal's effect on the company's ability to meet debt obligations.
Currency reserves, which in other countries are used to intervene in the foreign exchange markets, are mostly pledged to meet debt payments in the Philippines.
With individual and corporate debt so high, any slowdown in the growth of income can result in cutbacks in spending to meet debt service payments.
The income tax would only be a fallback, or insurance, if the state's tobacco revenues were not sufficient to meet debt obligations, officials said.
