These highly-indebted corporates will be at risk once interest rates rise

They have high gearing and low interest rate cover.

Higher Singapore interest rates could spell trouble for locally-listed corporates with high gearing.

RHB Research released a list of 24 firms which have gearing greater than 120% and an interest cover below 2x.

The ten firms with the highest gearing are Keppel Infrastructure Trust, Linc Energy, Aspial Corporation, Neptune Orient Lines, Halcyon Agri, Cosco Corp, Vallianz Holdings, Olam International, Otto Marine, and International Healthway Corp.

These are followed by Genting Hong Kong, Tee International, Swiber Holdings, Guocoland, Tiger Airways, Technics Oil, Weiye Holdings, Kencana Agri, Delong Holdings, Midas Holdings, ASL Marine Holdings, Samko Timber, Stats Chippac, and Heeton Holdings.

The list only includes corporates whose market cap exceed $80m.

“Whilst we note that there could be other considerations, we see this as a first filter to pick out relevant companies. Some of these companies could experience higher funding costs with a rise in the Singapore interest rate,” said the report.