Debt can be deadly – here's how to avoid stocks with too much - MoneyWeek

Debt can be deadly – here's how to avoid stocks with too much - MoneyWeek: "One thing lies at the heart of all of today's financial problems – dodgy debt. It has steadily worked its way up the food chain, poisoning the financial eco-system as it goes.
First, it was individuals – American sub-prime debtors who couldn't pay their interest bills. Then it was banks, as the loans they'd made to those borrowers went bad.
Then it was countries like Greece who spent too much. Now whole currencies, like the euro, are under threat.
The jitters are already having a nasty impact on stock markets. The FTSE 100 was down nearly 3% yesterday. And things could get even worse if investors start fretting about the debt that private companies owe.
So where do London shares fit into the picture – and which companies have the most secure balance sheets?
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• 'Poitroski score' definedOverall, the UK's current corporate cash position isn't too bad. Non–financial companies in the FTSE 350 index have recently been raising lots more money. Some have cashed in on the stock market rally since March 2009 using rights issues. And others have flogged off more corporate bonds, as long-term interest rates have fallen."