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Default, Transition, and Recovery: Constellis And TOMS Are The First Corporate Defaulters Of The New Decade

Virginia-based aerospace and defense service provider Constellis Holdings LLC and California-based shoes and accessories seller TOMS Shoes LLC have become the first companies rated by S&P Global Ratings to default in 2020. In addition, we have revised our 2019 global corporate default tally to 118 from 117 due to a monthly reconciliation process, adding Ohio-based cold-weather and rainwear wholesaler Indra Holdings Corp.

We estimate the 12-month trailing speculative-grade default rate remained unchanged for the U.S. region at 3.1% in December 2019, while we estimate the rate for Europe increased to 2.2% in December from 2.1% in November.

Chart 1

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This Week's Observations

  • At this point in 2018 and 2019, four and two companies had defaulted, respectively.
  • The U.S. held the majority of 2019 defaults, with 78 of 118, or 66% of the total.
  • The oil and gas sector led defaults in 2018 and 2019 with 17 and 20, respectively.

Chart 2

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Chart 3

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Chart 4

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Table 1

European Speculative-Grade Default Rate Estimated To Rise In December
Global corporate default summary
Region 12-month trailing speculative-grade default rate (%) 2020 year-to-date default tally 2019 default tally 2018 default tally Weakest links tally
U.S. 3.1* 2 78 47 180
Emerging markets 1.3 0 22 17 50
Europe 2.2* 0 15 13 36
Other developed 1.3 0 3 5 6
Global 2.4 2 118 82 272
Note: Other developed region consists of Australia, Canada, Japan, and New Zealand. Default counts may include confidentially rated issuers. *Trailing-12-month default rates from Dec. 31, 2018-Dec. 31, 2019, are preliminary and subject to change. Year-to-date data as of Jan. 8, 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 2020 At Two
Date Parent company Country Subsector To From Reason
1/2/2020

Constellis Holdings LLC

U.S. Aerospace and defense SD CC Missed principal payments
1/7/2020

TOMS Shoes LLC

U.S. Consumer products D CCC Distressed exchange
SD--Selective default. Data as of Jan. 8, 2020. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 3

2019 Global Corporate Default Tally Reached 118
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.) (A) 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. (A) 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. (A) 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 (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. (B) 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. (B) 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.) (B) 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 (B) 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
12/4/2019 Indra Holdings Corp. U.S. Consumer products D CCC Missed interest and principal 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. 8, 2020. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Related Research

  • TOMS Shoes LLC Downgraded To 'D' From 'CCC' After Lenders Take Control Of Company, Jan. 7, 2020
  • Constellis Holdings LLC Lowered To 'SD' On Missed Principal Payment, Jan. 2, 2020
  • Indra Holdings Corp. Downgraded To 'D' On Nonpayment Of Interest And Principal And Entry Into A RSA, Ratings Withdrawn, Dec. 4, 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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