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).
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.
|Global Corporate Default Summary|
|12-month trailing speculative-grade default rate* (%)||2020 (YTD)||2019 (YTD)||2019||Weakest links|
|*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®.|
|Global Corporate Defaults 2020|
Constellis Holdings LLC
|U.S.||Aerospace and defense||SD||CC||Missed principal payments|
TOMS Shoes LLC
|U.S.||Consumer products||D||CCC||Distressed exchange|
Moran Foods LLC (SAL Acquisition Corp.)
|U.S.||Retail/restaurants||SD||CCC||Missed interest payments|
|Luxembourg||Forest products and building materials||SD||CC||Missed interest payments|
Qinghai Provincial Investment Group Co. Ltd.
|China||Metals, mining, and steel||D||CCC-||Missed interest payments|
Krystal Co. (The)
Panda Green Energy Group Ltd.
|Spain||Consumer products||SD||CC||Distressed exchange/ out-of-court restructuring|
Doncasters Group Ltd.
|U.K.||Capital goods||SD||CCC-||Distressed exchange/ out-of-court restructuring|
Pinnacle Operating Corp.
|U.S.||Chemicals, packaging, and environmental services||SD||CCC||Distressed exchange/ out-of-court restructuring|
Commercial Barge Line Co.
|U.S.||Media and entertainment||D||NR||Chapter 11|
The McClatchy Co.
|U.S.||Media and entertainment||D||CC||Chapter 11|
|Italy||Transportation||SD||CCC-||Distressed exchange/ out-of-court restructuring|
NPC International Inc.
|U.S.||Retail/restaurants||SD||CCC-||Missed interest payments|
Pier 1 Imports Inc.
Tunghsu Group Co. Ltd.
|China||High technology||SD||CCC-||Missed principal and interest payments|
VIP Cinema Holdings Inc.
|U.S.||Consumer products||D||CCC-||Chapter 11|
Calfrac Well Services Ltd.
|Canada||Oil and gas||SD||CC||Distressed exchange|
PFS Holding Corp.
|U.S.||Consumer products||SD||CCC-||Missed interest payments|
Pioneer Energy Services Corp.
|U.S.||Oil and gas||D||CCC-||Chapter 11|
Bluestem Brands Inc.
Ascena Retail Group Inc.
|U.S.||Consumer products||SD||CCC||Distressed exchange|
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|
Frontier Communications Corp.
|U.S.||Telecommunications||SD||CCC-||Missed interest payments|
Geo Energy Resources Ltd.
|Singapore||Metals, mining, and steel||SD||B-||Distressed exchange|
Grain Insurance Co. JSC
|Kazakhstan||Insurance||D||B||Missed interest payments|
|U.S.||High technology||SD||CCC+||Distressed exchange|
Yida China Holdings Ltd.
|Cayman Islands||Homebuilders/real estate companies||SD||CC||Distressed exchange|
PGX Holdings Inc.
|U.S.||Media and entertainment||D||CCC||Missed principal and interest payments|
Steak n Shake Inc. (Biglari Holdings Inc.)
Whiting Petroleum Corp.
|U.S.||Oil and gas||D||CCC+||Chapter 11|
KCA DEUTAG Alpha Ltd.
|U.K.||Oil and gas||SD||CCC+||Missed interest payments|
|Canada||Media and entertainment||D||CCC-||Missed principal and interest payments|
New Millennium Holdco Inc.
|U.S.||Health care||D||CC||Missed principal and interest payments|
BW Homecare Holdings LLC
|U.S.||Health care||SD||CCC||Distressed exchange|
FE Investments Ltd.
|New Zealand||Finance companies||D||CCC||Receivership|
Gavilan Resources LLC
|U.S.||Oil and gas||D||CCC-||Missed interest payments|
|U.S.||Capital goods||SD||CCC||Missed interest payments|
Quorum Health Corp.
|U.S.||Health care||D||CCC-||Chapter 11|
Speedcast International Ltd.
|Australia||Telecommunications||D||CCC||Missed principal and interest payments|
North American Lifting Holdings Inc.
|U.S.||Capital goods||SD||CCC-||Missed interest payments|
SPR Holdings LLC
|U.S.||Oil and gas||D||CCC+||Missed interest payments|
|4/9/2020||Confidential||Confidential||Media and entertainment||SD||CC||Confidential|
Vestel Elektronik Sanayi Ve Ticaret A.S.
|Turkey||High technology||SD||CCC+||Distressed exchange|
LSC Communications Inc.
|U.S.||Media and entertainment||D||CC||Chapter 11|
|U.S.||Consumer products||SD||CCC||Distressed exchange|
NMC Health PLC
|U.A.E.||Health care||D||CCC-||Missed interest payments|
|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®.|
- 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
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
- 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;|
|Sudeep K Kesh, New York (1) 212-438-7982;|
|Research Contributor:||Shripati Pranshu, Mumbai;|
No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.
Any Passwords/user IDs issued by S&P to users are single user-dedicated and may ONLY be used by the individual to whom they have been assigned. No sharing of passwords/user IDs and no simultaneous access via the same password/user ID is permitted. To reprint, translate, or use the data or information other than as provided herein, contact S&P Global Ratings, Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to: firstname.lastname@example.org.