Credit crunch to hit DB schemes - LC&P

The warning follows The Bank of England’s credit conditions survey for quarter three which says lending to the corporate sector has dropped. LC&P says the Bank of England expects corporate credit availability to fall further as fees, commissions and interest margins have rise. Lenders also expect to impose stricter covenants, seek additional security and reduce credit line limits. David Poynton, head of credit analysis at Lane Clark & Peacock, says: "This means that many sponsoring employers will be faced with increased costs of financing, as well as lenders looking for additional secur...