European companies are borrowing capital at a rate and scale similar to that raised in the default-ridden year of 2001, heightening fears the corporate sector is laying the foundations for a sharp deterioration of credit in the years ahead.

European corporate borrowing grew at its fastest rate since 2001 in the year to the end of the second quarter, when companies alone raised €250bn ($365bn) of debt, according to a report from CreditSights, the independent US research firm.