4 May, 2022

Global corporate default count hits 27, lags 2021's pace – S&P Global Ratings

The global tally of corporate defaults inched up this week by one, to 27, after Wesco Aircraft Holdings Inc. (dba Incora) concluded its recapitalization and was downgraded to selective default by S&P Global Ratings, according to a report released today by Ratings. Wesco was subsequently upgraded a few days later to CCC+.

The report shows that the pace of global defaults this year is running around three-quarters of 2021’s rate. On April 27, 2021, the global total was 35 corporate defaults. The full-year default count for 2021 was 72, indicating that the default pace slowed later in the year.

 
The U.S. region leads the 2022 global tally, with 12 defaults, one ahead of emerging markets and triple Europe’s four defaults so far. Other developed countries (Australia, Canada, Japan and New Zealand) have still not recorded a default in 2022. At this point in 2021, the U.S. region led the global count as well, with 22 defaults.

As was true last week, the consumer products sector continues leading all sectors, with six defaults so far in 2022, followed by homebuilding/real estate with four, and then utilities and media/entertainment with three each.