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Default, Transition, and Recovery: Two U.S. Energy Defaults Bring This Year's Corporate Default Tally To 73

This year's global corporate default tally increased to 73 as of Aug. 14 following the addition of two defaults by U.S. energy companies since our last report. The first, Texas-based oil and gas exploration and production company Sanchez Energy Corp., voluntarily filed for Chapter 11 bankruptcy this week (see "Sanchez Energy Corp. Downgraded To 'D' On Chapter 11 Bankruptcy Filing," Aug. 12, 2019). In addition, we revised our tally to include Kentucky-based coal mining company Blackhawk Mining LLC, which defaulted after the ratings were withdrawn at the issuer's request. The U.S. now leads with 51 corporate defaults (70% of the global tally), the second-highest U.S. year-to-date tally since 2013 (with 2016 being the highest).

Chart 1

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This Week's Observations

  • With the addition of two energy industry defaults this week, the oil and gas sector and metals, mining, and steel sector together make up 29% of the global tally, with 21 defaults.
  • There have been six defaults in the metals, mining, and steel sector so far in 2019--double the number of defaults in the sector through year-end 2018 (see chart 2).
  • The number of bankruptcy-related defaults in 2019 (21) has increased compared with 2018 (20 as of year-end) (see chart 4).

Chart 2

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Chart 3

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Table 1

We Estimate The U.S. 12-Month-Trailing Speculative-Grade Default Rate Will Remain At 2.4% For July
Global Corporate Default Summary
Region 12-month trailing speculative-grade default rate (%) 2019 year-to-date default tally 2018 year-to-date default tally 2018 default tally Weakest links tally
U.S. 2.4* 51 33 47 162
Emerging markets 1.5 11 12 17 32
Europe 2.0* 8 7 13 29
Other developed 2.6 3 3 5 4
Global 2.1 73 55 82 227
Notes: Other developed region consists of Australia, Canada, Japan, and New Zealand. Default counts may include confidentially rated issuers. *Trailing-12-month default rates from July 31, 2018-July 31, 2019, are preliminary and subject to change. Year-to-date data as of Aug. 14, 2019. Weakest link data as of June 24, 2019. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Chart 4

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Chart 5

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Table 2

Sanchez Energy Corp. Is The Latest On A Long List Of Oil And Gas Defaulters In 2019
Date Parent company Country Subsector To From Reason
1/2/2019

Ultra Petroleum Corp

U.S. Oil and gas SD CC Distressed exchange
1/8/2019 Confidential Confidential Telecommunications D CCC Confidential
1/15/2019

API Heat Transfer Co.

U.S. Capital goods SD CCC- Distressed exchange
1/16/2019

Shopko Stores Inc.

U.S. Retail/restaurants D NR Chapter 11
1/16/2019

Pacific Gas & Electric Co. (PG&E Corp.)

U.S. Utilities D CC Missed interest payments
1/18/2019

Ditech Holding Corp.

U.S. Finance companies SD CCC Missed interest payments
1/29/2019

PG&E Corp.

U.S. Utilities D CC Chapter 11
1/30/2019

Eletson Holdings Inc.

Liberia Transportation SD CCC Missed interest payments
1/31/2019

New Look Retail Group Ltd.

U.K. Retail/restaurants SD CC Distressed exchange
2/1/2019 Tsesnabank Kazakhstan Bank SD B- Distressed exchange/out-of-court restructuring
2/4/2019 Confidential Confidential Homebuilders/real estate companies D CCC- Confidential
2/4/2019

Charlotte Russe Inc.

U.S. Retail/restaurants D CCC- Chapter 11
2/6/2019

TRM Holdings Corp.

U.S. Retail/restaurants D NR Chapter 11
2/7/2019

Fuse Media Inc.

U.S. Media and entertainment D CC Missed interest payments
2/7/2019

Hornbeck Offshore Services Inc.

U.S. Oil and gas SD CC Distressed exchange
2/10/2019

Trident Holding Co. LLC

U.S. Health care D NR Chapter 11
2/19/2019

Payless Inc.

U.S. Retail/restaurants D CCC- Chapter 11
2/21/2019

Novasep Holding S.A.S.

France Health care SD CC Distressed exchange
2/21/2019

One Call Corp. (One Call Care Management Inc.)

U.S. Insurance SD CC Distressed exchange/out-of-court restructuring
2/26/2019

Windstream Holdings Inc.

U.S. Telecommunications D CCC- Chapter 11
3/8/2019

Affinion Group Holdings Inc.

U.S. Media and entertainment SD CCC- Missed interest payments
3/11/2019

CTI Foods Holding Co. LLC

U.S. Consumer products D CCC- Chapter 11
3/15/2019

Imperial Metals Corp.

Canada Metals, mining, and steel SD CCC- Missed interest payments
3/15/2019

Cloud Peak Energy Resources LLC

U.S. Metals, mining, and steel SD CCC Missed interest payments
3/15/2019

PHI Inc.

U.S. Oil and gas D CCC- Chapter 11
3/20/2019

Nyrstar N.V.

Belgium Metals, mining, and steel SD CCC+ Missed interest payments
3/21/2019

Murray Energy Corp.

U.S. Metals, mining, and steel SD CCC+ Distressed exchange
3/28/2019

Evergreen AcqCo1 L.P. d/b/a Savers

U.S. Retail/restaurants SD CCC Distressed exchange
3/29/2019 Confidential Confidential High technology D CCC- Confidential
4/1/2019

Hexion Inc.

U.S. Chemicals, packaging, and environmental services D CCC Chapter 11
4/1/2019

Southcross Energy Partners L.P.

U.S. Utilities D NR Chapter 11
4/2/2019

Sungard Availability Services Capital Inc.

U.S. High technology D CCC+ Chapter 11
4/2/2019

Monitronics International Inc.

U.S. Media and entertainment SD CC Missed interest payments
4/3/2019

Maxcom Telecomunicaciones S.A.B. de C.V.

Mexico Telecommunications SD CCC+ Distressed exchange
4/3/2019

Bellatrix Exploration Ltd.

Canada Oil and gas D CCC Missed interest payments
4/4/2019

Debenhams PLC

U.K. Retail/restaurants SD CC Distressed exchange
4/4/2019

Fusion Connect Inc.

U.S. Telecommunications D B Missed interest payments
4/5/2019

Curvature Inc.

U.S. High technology SD CCC+ Distressed exchange
4/12/2019

MIE Holdings Corp.

Cayman Islands Oil and gas SD CC Distressed exchange
4/14/2019

Jones Energy Inc.

U.S. Oil and gas D NR Chapter 11
4/15/2019

Crossmark Holdings Inc.

U.S. Consumer products SD CC Missed interest payments
4/16/2019

Bristow Group Inc.

U.S. Oil and gas D CCC- Missed interest payments
5/1/2019 Confidential Confidential Media and entertainment D NR Confidential
5/2/2019

Senvion Holding GmbH (Suzlon Energy Ltd.)

Germany Capital goods SD CC Missed interest payments
5/2/2019

Parq Holdings L.P.

Canada Media and entertainment SD CCC Missed interest payments
5/6/2019

Hospital Acquisition LLC (d/b/a LCI Holding Co. LLC)

U.S. Health care D NR Chapter 11
5/9/2019

Preferred Proppants LLC

U.S. Metals, mining, and steel D CCC+ Distressed exchange
5/22/2019

USJ Acucar e Alcool S.A.

Brazil Consumer products SD CC Distressed exchange
5/27/2019 Confidential Confidential Chemicals, packaging, and environmental services SD CCC Confidential
5/28/2019 White Star Petroleum Holdings LLC U.S. Oil and gas D NR Chapter 11
5/31/2019

Sheridan Investment Partners II L.P. (Sheridan Holding Co. II LLC)

U.S. Finance companies SD CCC- Missed interest payments
5/31/2019

Sheridan Investment Partners I LLC (Sheridan Holding Co. I LLC)

U.S. Finance companies SD CCC- Distressed exchange
6/3/2019 Confidential Confidential Media and entertainment D NR Confidential
6/3/2019

FTD Inc.

U.S. Retail/restaurants D NR Chapter 11
6/4/2019

Legacy Reserves L.P.

U.S. Oil and gas D CCC- Missed interest payments
6/11/2019

Neiman Marcus Group LLC (The)

U.S. Retail/restaurants SD CC Distressed exchange/out-of-court restructuring
6/14/2019

New Academy Holding Co. LLC

U.S. Retail/restaurants SD CCC+ Distressed exchange
6/19/2019

Denbury Resources Inc.

U.S. Oil and gas SD CC Distressed exchange
6/21/2019 Confidential Confidential Transportation SD CC Confidential
6/21/2019

Galapagos Holding S.A.

Luxembourg Capital goods SD CC Missed interest payments
6/24/2019 Confidential Confidential Health care D NR Confidential
6/26/2019

Cell C (Pty) Ltd.

South Africa Telecommunications SD CCC- Distressed exchange
6/28/2019

Mood Media Corp.

U.S. Media and entertainment SD CC Distressed exchange
7/2/2019

Weatherford International PLC

Ireland Oil and gas D CC Chapter 11
7/3/2019

PES Holdings LLC

U.S. Oil and gas D B- Missed interest payments
7/11/2019

Stearns Holdings LLC

U.S. Finance companies D CCC+ Chapter 11
7/12/2019 Confidential Confidential Homebuilders/real estate companies SD CC Confidential
7/18/2019

American Energy Permian Holdings LLC

U.S. Oil and gas D CC Missed interest payments
7/19/2019

Blackhawk Mining

U.S. Metals, mining, and steel D NR Chapter 11
7/23/2019

99 cents only stores LLC

U.S. Retail/restaurants SD CC Distressed exchange
7/23/2019

Avianca Holdings S.A.

Panama Transportation SD CCC+ Missed principal payments
8/7/2019

Halcon Resources Corp.

U.S. Oil and gas D CC Chapter 11
8/12/2019

Sanchez Energy Corp.

U.S. Oil and gas D CC Chapter 11
NR--Not rated. SD--Selective default. Data as of Aug. 14, 2019. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Default Studies

More analysis and statistics are available in our annual default studies, published on RatingsDirect:

Corporate (financial and nonfinancial)
  • 2018 Annual Taiwan Ratings Corp. Corporate Default And Rating Transition Study
  • 2018 Annual Global Corporate Default And Rating Transition Study
  • 2018 Annual U.S. Corporate Default And Rating Transition Study
  • 2018 Annual Asia Corporate Default And Rating Transition Study
  • Japanese Issuer Credit Rating Transitions Study 2018
  • 2017 Annual Australia And New Zealand Corporate Default Study And Rating Transitions
  • 2017 Inaugural Infrastructure Default Study And Rating Transitions
  • 2017 Mexican National-Scale Corporate And Public Finance Default Study And Rating Transitions
  • 2017 Annual Emerging Markets Corporate Default Study And Rating Transitions
  • 2017 Annual European Corporate Default Study And Rating Transitions
  • 2017 Annual Canadian Corporate Default Study And Rating Transitions
  • 2017 Inaugural Nordic Default Study And Rating Transitions
  • 2017 Annual Brazil Corporate Default Study And Rating Transitions
  • 2017 Annual Greater China Corporate Default Study And Rating Transitions
  • 2017 Annual Global Financial Services Default Study And Rating Transitions
  • 2017 Annual Latin American Corporate Default Study And Rating Transitions
Structured finance
  • 2018 Annual Global Leveraged Loan CLO Default And Rating Transition Study
  • 2018 Annual Taiwan Structured Finance Default Study And Rating Transitions
  • 2018 Annual Global Structured Finance Default Study And Rating Transitions
  • 2018 Annual Japanese Structured Finance Default Study And Rating Transitions
  • 2017 Annual Mexican Structured Finance Default Study And Rating Transitions
  • 2017 Annual European Structured Finance Default Study And Rating Transitions
U.S. public finance
  • 2018 Annual U.S. Public Finance Default Study And Rating Transitions
  • 2017 Annual U.S. Public Finance Not-For-Profit Health Care Default Study And Rating Transitions
  • 2017 U.S. Public Finance Utility Default Study And Rating Transitions
  • 2017 U.S. Public Finance Transportation Default Study And Rating Transitions
  • 2017 Annual U.S. Public Finance Housing Default Study And Rating Transitions
  • 2017 Annual U.S. Public Finance Charter School Default Study And Rating Transitions
  • 2017 Annual U.S. Public Finance Higher Education And Nonprofit Organization Default Study And Rating Transitions
Sovereign and international public finance
  • 2018 Annual Sovereign Default And Rating Transition Study
  • 2017 Annual International Public Finance Default Study And Rating Transitions

This report does not constitute a rating action.

Credit Markets Research:Nicole Serino, New York;
nicole.serino@spglobal.com
Sudeep K Kesh, New York (1) 212-438-7982;
sudeep.kesh@spglobal.com
Research Contributor:Lyndon Fernandes, CRISIL Global Analytical Center, an S&P affiliate, Mumbai

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