According to Wallstreetcn, Moody's Ratings said companies facing the risk of being replaced by AI may struggle to refinance their payment-in-kind, or PIK, loans because falling valuations make investors unwilling to buy new debt. Analysts led by Artur Mendes wrote in a report that Europe's speculative-grade software sector is one of the most exposed areas, with about 50% of companies relying on PIK debt, which allows borrowers to pay interest with additional debt rather than cash and increases future debt burdens.