Australian companies have, for the most part, reduced borrowings significantly over the last five years. But as the problems in Europe hit the local banking system, certain companies on the radar of investment bank Goldman Sachs remain exposed to higher costs and reduced availability of funds.

By historical standards, the group of ASX300 companies that Goldman Sachs rates are under-utilising debt. “Leverage is only expected to fall further over the next few years," Goldman Sach’s equity strategists said in a report to clients.