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In This List
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Default, Transition, and Recovery: Six Defaults This Week Push The 2020 Default Tally To 51

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Default, Transition, and Recovery: Six Defaults This Week Push The 2020 Default Tally To 51

The 2020 global corporate default tally reached 51 this week after six defaults. The defaulters included: Turkish technology provider Vestel Elektronik Sanayi Ve Ticaret A.S., Chicago-based printing and digital media company LSC Communications Inc., Toledo, Ohio-based glass products manufacturer and marketer Libbey Inc., UAE-based healthcare service provider NMC Health PLC, Luxembourg-based satellite provider Intelsat S.A., and one confidential issuer.

As of April 14, there have been 1,208 issuers with rating actions impacted by COVID-19 and/or oil prices globally, including more than580 downgrades, (see "Coronavirus- And Oil Price-Related Public Rating Actions On Corporations, Sovereigns, And Project Finance To Date," published April 15, 2020, on RatingsDirect). Two out of six defaults this week were from the media and entertainment sector, which has seen numerous negative rating actions since the beginning of the pandemic. Advertising is the primary revenue source and highly correlated with changes in deteriorating economic conditions for this sector. While it's far too early to assess how the pandemic will affect overall consumer confidence and spending worldwide, advertisers have already begun to pull back on marketing plans in response (compounded by the lack of in-store spending due to social distancing measures). Though ad-based companies may not yet be subject to repercussions, S&P Global Ratings believes they'll eventually feel the pain (see "COVID-19 Increases Pressure On Global Media & Entertainment Ratings," March 26, 2020).

Chart 1

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This Week's Observations

  • The current 2020 tally of 51 higher than it was at this point in 2019 and 2018, with 41 and 29, respectively.
  • Four sectors lead with six defaults each: oil and gas, consumer products, retail and restaurants, and media and entertainment.
  • Missed interest and principle payments are the lead reasons for defaults in 2020 so far, with 20, followed by distressed exchanges with 16.

Chart 2

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Chart 3

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Jan-01

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Table 1

Global Corporate Default Summary
12-month trailing speculative-grade default rate* (%) 2020 (YTD) 2019 (YTD) 2019 Weakest links
U.S. 3.4* 34 30 78 309
Emerging market 1.6 7 5 22 41
Europe 2.4* 6 4 15 70
Other developed 2.6 4 2 3 20
Global 2.7 51 41 118 440
*Trailing-12-month default rates from March 31, 2019 - March 31, 2020, are preliminary and subject to change. 2020 data as of April 15, 2020. Weakest link data are as of March 31, 2019. Other developed region includes Australia, Canada, Japan, and New Zealand. Default counts may include confidentially rated issuers. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®.

Table 2

Global Corporate Defaults 2020
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
1/9/2020

Moran Foods LLC (SAL Acquisition Corp.)

U.S. Retail/restaurants SD CCC Missed interest payments
1/13/2020

Lecta S.A.

Luxembourg Forest products and building materials SD CC Missed interest payments
1/14/2020

Qinghai Provincial Investment Group Co. Ltd.

China Metals, mining, and steel D CCC- Missed interest payments
1/19/2020

Krystal Co. (The)

U.S. Retail/restaurants D NR Chapter 11
1/21/2020

Panda Green Energy Group Ltd.

Bermuda Utilities SD CC Distressed exchange
1/22/2020

Deoleo S.A.

Spain Consumer products SD CC Distressed exchange/ out-of-court restructuring
1/29/2020

Doncasters Group Ltd.

U.K. Capital goods SD CCC- Distressed exchange/ out-of-court restructuring
1/30/2020

Pinnacle Operating Corp.

U.S. Chemicals, packaging, and environmental services SD CCC Distressed exchange/ out-of-court restructuring
2/7/2020

Commercial Barge Line Co.

U.S. Transportation D CC Chapter 11
2/12/2020

RentPath LLC

U.S. Media and entertainment D NR Chapter 11
2/13/2020

The McClatchy Co.

U.S. Media and entertainment D CC Chapter 11
2/14/2020

Moby SpA

Italy Transportation SD CCC- Distressed exchange/ out-of-court restructuring
2/14/2020

NPC International Inc.

U.S. Retail/restaurants SD CCC- Missed interest payments
2/18/2020

Pier 1 Imports Inc.

U.S. Retail/restaurants D CCC- Chapter 11
2/21/2020

Tunghsu Group Co. Ltd.

China High technology SD CCC- Missed principal and interest payments
2/24/2020

VIP Cinema Holdings Inc.

U.S. Consumer products D CCC- Chapter 11
2/25/2020

Calfrac Well Services Ltd.

Canada Oil and gas SD CC Distressed exchange
2/28/2020

PFS Holding Corp.

U.S. Consumer products SD CCC- Missed interest payments
3/3/2020

Pioneer Energy Services Corp.

U.S. Oil and gas D CCC- Chapter 11
3/9/2020

Bluestem Brands Inc.

U.S. Retail/restaurants D NR Chapter 11
3/12/2020

Ascena Retail Group Inc.

U.S. Consumer products SD CCC Distressed exchange
3/12/2020

Optimas OE Solutions Holding LLC

U.S. Capital goods SD CCC+ Distressed exchange
3/12/2020 Confidential Confidential Metals, mining, and steel SD CCC- Confidential
3/16/2020

Frontier Communications Corp.

U.S. Telecommunications SD CCC- Missed interest payments
3/17/2020

Internap Corp.

U.S. Telecommunications D CCC+ Chapter 11
3/19/2020

Geo Energy Resources Ltd.

Singapore Metals, mining, and steel SD B- Distressed exchange
3/20/2020

Grain Insurance Co. JSC

Kazakhstan Insurance D B Missed interest payments
3/27/2020

Optiv Inc.

U.S. High technology SD CCC+ Distressed exchange
3/27/2020

Yida China Holdings Ltd.

Cayman Islands Homebuilders/real estate companies SD CC Distressed exchange
4/1/2020

PGX Holdings Inc.

U.S. Media and entertainment D CCC Missed principal and interest payments
4/1/2020

Steak n Shake Inc. (Biglari Holdings Inc.)

U.S. Retail/restaurants SD CCC- Distressed exchange
4/1/2020

Whiting Petroleum Corp.

U.S. Oil and gas D CCC+ Chapter 11
4/2/2020

KCA DEUTAG Alpha Ltd.

U.K. Oil and gas SD CCC+ Missed interest payments
4/3/2020

CDS Group

Canada Media and entertainment D CCC- Missed principal and interest payments
4/3/2020

New Millennium Holdco Inc.

U.S. Health care D CC Missed principal and interest payments
4/6/2020

BW Homecare Holdings LLC

U.S. Health care SD CCC Distressed exchange
4/6/2020

FE Investments Ltd.

New Zealand Finance companies D CCC Receivership
4/7/2020

Gavilan Resources LLC

U.S. Oil and gas D CCC- Missed interest payments
4/7/2020

Jason Inc.

U.S. Capital goods SD CCC Missed interest payments
4/7/2020

Quorum Health Corp.

U.S. Health care D CCC- Chapter 11
4/7/2020

Speedcast International Ltd.

Australia Telecommunications D CCC Missed principal and interest payments
4/8/2020

North American Lifting Holdings Inc.

U.S. Capital goods SD CCC- Missed interest payments
4/8/2020

SPR Holdings LLC

U.S. Oil and gas D CCC+ Missed interest payments
4/9/2020 Confidential Confidential Media and entertainment SD CC Confidential
4/10/2020

Vestel Elektronik Sanayi Ve Ticaret A.S.

Turkey High technology SD CCC+ Distressed exchange
4/14/2020

LSC Communications Inc.

U.S. Media and entertainment D CC Chapter 11
4/14/2020

Libbey Inc.

U.S. Consumer products SD CCC Distressed exchange
4/14/2020

NMC Health PLC

U.A.E. Health care D CCC- Missed interest payments
4/15/2020

Intelsat S.A.

Luxembourg Telecommunications SD CCC+ Missed interest payments
NR--Not rated. SD--Selective default. Data as of April 15, 2020. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®.

Related Research

  • Libbey Inc. Downgraded To 'SD' From 'CCC' On Payment Deferral, April 15, 2020
  • LSC Communications Inc. Downgraded To 'D' From 'CC' On Chapter 11 Bankruptcy Filing, April 15, 2020
  • Intelsat S.A. Downgraded To 'SD' From 'CCC+' Following Missed Interest Payment On Unsecured Notes, April 15, 2020
  • Potential Bond Downgrades Spike On Risks Related To COVID-19, April 15, 2020
  • UAE-Based NMC Health PLC Rating Lowered To 'D' From 'CCC-' On Appointment Of Administrator, April 14, 2020
  • Turkish TV And Household Appliance Manufacturer Vestel Downgraded To 'SD' From 'CCC+' On Debt Postponement, April 10, 2020
  • COVID-19 Increases Pressure On Global Media & Entertainment Ratings, March 26, 2020

Default Studies

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

Corporate (financial and nonfinancial)
  • Japanese Issuer Credit Rating Transitions Study 2019
  • 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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