The 2019 corporate default tally reached 117, up by 43% from the previous year's total of 82 and marking the second-highest tally since 2009. Six companies defaulted since our last report (published Dec. 12, 2019): Lebanon-based banks Bank Audi S.A.L., Bankmed S.A.L., and Blom Bank S.A.L.; France-based consumer products supplier Novartex; U.K.-based restaurant chain PizzaExpress Financing 1 PLC; and Illinois-based information technology company 4L Technologies Inc.
Chart 1
2019 Observations
- The oil and gas sector and retail and restaurant sector led defaults in 2019 with 20 and 16, respectively (see chart 2).
- Compared to 2018, the telecom sector experienced the highest increase in defaults, to eight from two, followed by retail and restaurants; metals, mining, and steel; and health care (each with an increase of five).
- By region, the U.S. led defaults in 2019 with 77, followed by the emerging markets with 22. U.S. defaults grew in 2019 to 66% of the global total, from 57% in 2018 (see chart 1).
- Distressed exchanges were the leading cause of defaults in 2019, with 36 (see chart 3).
- The global speculative-grade default rate increased to 2.4% in November 2019 from 2.3% in October (see table 1). The energy and natural resources sector's default rate ebbed slightly, to 5.9% in November from 6.0% in October (see chart 4).
Chart 2
Chart 3
Chart 4
Table 1
Global Speculative-Grade Default Rate Rose To 2.4% In November | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Global corporate default summary | ||||||||||||
Region | 12-month trailing speculative-grade default rate (%) | 2019 default tally | 2018 default tally | 2017 default tally | Weakest links tally | |||||||
U.S. | 3.1 | 77 | 47 | 65 | 180 | |||||||
Emerging markets | 1.3 | 22 | 17 | 8 | 50 | |||||||
Europe | 2.1 | 15 | 13 | 16 | 36 | |||||||
Other developed | 1.3 | 3 | 5 | 6 | 6 | |||||||
Global | 2.4 | 117 | 82 | 95 | 272 | |||||||
Notes: Trailing-12-month default rates from Nov. 30, 2018-Nov. 30, 2019, are preliminary and subject to change. Other developed region consists of Australia, Canada, Japan, and New Zealand. Default counts may include confidentially rated issuers. Year-to-date data as of Jan. 1, 2020. Weakest link data as of Nov. 18, 2019. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®. |
Table 2
Global Corporate Default Tally In 2019 Reached 117 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Global corporate defaults 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 and 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 LP 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 Ltd. Partnership | Canada | Media and entertainment | SD | CCC | Missed interest payments | ||||||||
5/6/2019 | Hospital Acquisition LLC (dba 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, LP (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 LP | 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 | ||||||||
8/6/2019 | Barneys New York Inc. | U.S. | Retail/restaurants | D | NR | Chapter 11 | ||||||||
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 | ||||||||
8/21/2019 | Maxcom Telecomunicaciones S.A.B. de C.V. | Mexico | Telecommunications | D | CC | Missed interest payments | ||||||||
9/3/2019 | Burger BossCo Intermediate Inc. | U.S. | Retail/restaurants | SD | CCC+ | Distressed exchange | ||||||||
9/9/2019 | Confidential | Confidential | Consumer products | D | NR | Confidential | ||||||||
9/12/2019 | Alta Mesa Resources Inc. | U.S. | Oil and gas | D | CCC- | Chapter 11 | ||||||||
9/13/2019 |
Chesapeake Energy Corp. |
U.S. | Oil and gas | SD | B+ | Distressed exchange | ||||||||
9/13/2019 | PT Delta Merlin Dunia Textile | Indonesia | Consumer products | D | CC | Missed interest payments | ||||||||
9/17/2019 |
EP Energy LLC |
U.S. | Oil and gas | D | CC | Missed interest payments | ||||||||
9/19/2019 | Confidential | Confidential | Capital goods | D | CCC | Confidential | ||||||||
9/24/2019 | Thomas Cook Group PLC | U.K. | Media and entertainment | D | CC | Chapter 15 | ||||||||
9/27/2019 |
Premiere Global Services Inc. |
U.S. | Telecommunications | SD | CCC- | Distressed exchange | ||||||||
10/2/2019 |
Acosta Inc. |
U.S. | Consumer products | SD | CCC | Missed principal and interest payments | ||||||||
10/2/2019 |
syncreon Group Holdings B.V. |
Netherlands | Consumer products | SD | CC | Distressed exchange | ||||||||
10/3/2019 | Deluxe Entertainment Services Group Inc. | U.S. | Media and entertainment | D | CC | Chapter 11 | ||||||||
10/4/2019 |
Murray Energy Corp. |
U.S. | Metals, mining, and steel | SD | CCC | Missed amortization and interest payments | ||||||||
10/7/2019 | Medical Depot Holdings Inc. | U.S. | Health care | D | CC | Distressed exchange | ||||||||
10/14/2019 |
Jain Irrigation Systems Ltd. |
India | Capital goods | SD | CCC | Missed principal payments | ||||||||
10/15/2019 |
Rite Aid Corp. |
U.S. | Retail/restaurants | SD | B- | Distressed exchange | ||||||||
10/16/2019 | Confidential | Confidential | Capital goods | D | CCC- | Confidential | ||||||||
10/17/2019 | CDR HRB Holdings Inc. | U.S. | Consumer products | D | CCC- | Missed principal and interest payments | ||||||||
10/17/2019 | Dura Automotive Systems LLC | U.S. | Automotive | D | NR | Chapter 11 | ||||||||
10/21/2019 | Destination Maternity Corp. | U.S. | Retail/restaurants | D | NR | Chapter 11 | ||||||||
10/27/2019 | Confidential | Confidential | Consumer products | D | CCC+ | Confidential | ||||||||
10/31/2019 | Foresight Energy L.P. (Murray Energy Corp.) | U.S. | Metals, mining, and steel | SD | CCC- | Missed interest payments | ||||||||
10/31/2019 | One Call Corp. (One Call Care Management Inc.) | U.S. | Insurance | SD | CC | Distressed exchange | ||||||||
11/6/2019 |
Hovnanian Enterprises Inc. |
U.S. | Homebuilders/real estate companies | SD | CCC+ | Distressed exchange | ||||||||
11/12/2019 |
Dean Foods Co. |
U.S. | Consumer products | D | CCC+ | Chapter 11 | ||||||||
11/13/2019 |
APC Automotive Technologies Intermediate Holdings LLC |
U.S. | Automotive | SD | CC | Distressed exchange | ||||||||
11/14/2019 |
IPC Corp. |
U.S. | Telecommunications | SD | CC | Distressed exchange | ||||||||
11/18/2019 | Approach Resources Inc. | U.S. | Oil and gas | D | NR | Chapter 11 | ||||||||
11/21/2019 | Bumble Bee Parent Inc. | U.S. | Consumer products | D | NR | Chapter 11 | ||||||||
11/25/2019 | AAC Holdings Inc. | U.S. | Health care | SD | CCC | Missed amortization and interest payments | ||||||||
11/25/2019 |
Community Health Systems Inc. |
U.S. | Health care | SD | CC | Distressed exchange | ||||||||
11/28/2019 |
USJ Acucar e Alcool S/A |
Brazil | Consumer products | SD | CCC+ | Missed amortization and interest payments | ||||||||
11/29/2019 |
Shandong Yuhuang Chemical Co. Ltd. |
China | Chemicals, packaging, and environmental services | D | CC | Missed principal payments | ||||||||
12/3/2019 |
McDermott International Inc. |
Panama | Capital goods | SD | CC | Missed interest payments | ||||||||
12/6/2019 |
Mallinckrodt plc |
Ireland | Health care | SD | CC | Distressed exchange | ||||||||
12/10/2019 |
Tapstone Energy LLC |
U.S. | Oil and gas | D | CCC+ | Missed interest payments | ||||||||
12/12/2019 |
4L Technologies Inc. |
U.S. | High technology | D | CCC | Chapter 11 | ||||||||
12/13/2019 |
PIZZAEXPRESS FINANCING 1 PLC |
U.K. | Retail/restaurants | SD | CCC- | Distressed exchange | ||||||||
12/17/2019 |
Novartex |
France | Consumer products | SD | CC | Distressed exchange | ||||||||
12/18/2019 |
Bank Audi S.A.L. |
Lebanon | Bank | SD | CCC | Regulatory intervention | ||||||||
12/18/2019 | Bankmed S.A.L. | Lebanon | Bank | SD | CCC | Regulatory intervention | ||||||||
12/18/2019 |
Blom Bank S.A.L. |
Lebanon | Bank | SD | CCC | Regulatory intervention | ||||||||
NR--Not rated. SD--Selective default. Data as of Jan. 1, 2020. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®. |
Related Research
- Ratings On Three Lebanese Banks Lowered To 'SD' On Revised Deposit Terms And Conditions, Dec. 18, 2019
- Novartex, Parent Of Apparel Retailer Vivarte, Downgraded To 'SD' On Approval Of Debt Restructuring, Dec. 17, 2019
- PizzaExpress Financing 1 PLC Rating Lowered To 'SD' On Completion Of Debt Exchange, Dec. 13, 2019
- 4L Technologies Inc. Downgraded To 'D' On Restructuring Agreement, Expected Chapter 11 Bankruptcy, Dec. 12, 2019
Default Studies
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2018 Annual Infrastructure Default And Rating Transition Study
- 2018 Annual Mexican National Scale Corporate And Public Finance Default And Rating Transition Study
- 2018 Annual Latin American Corporate Default And Rating Transition Study
- 2018 Annual Global Financial Services Default And Rating Transition Study
- 2018 Annual Greater China Corporate Default And Rating Transition Study
- 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 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
Structured finance
- 2018 Annual Mexican Structured Finance Default And Rating Transition Study
- 2018 Annual European Structured Finance Default And Rating Transition Study
- 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
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 International Public Finance Default And Rating Transition Study
- 2018 Annual Sovereign Default And Rating Transition Study
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: | Shripati Pranshu, Mumbai; shripati.pranshu@spglobal.com |
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