Industrial products company Colfax paid down some debt last year and had a big jump in EBITDA. But Moody’s Investors Service slapped a negative outlook on its revolver and term loan last month.

”Though the company's interest expense will decline due to recent refinancing and its leverage metrics will benefit from the $200 million debt paydown, the company's leverage still remains elevated in Moody's view and the general outlook for its business remains challenging particularly given the weak European economies,” Moody’s said in a rating action report.

Companies are not only borrowing more, but changing their financial policies on leverage. That may boost returns on equity, especially as long as interest rates remain low. Without continued earnings growth, increased profit margins, or substantial efficiency gains, however, these debt loads may eventually have to be reduced.