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In This List
COMMENTS

Default, Transition, and Recovery: Consumer And Service Sector Defaults Help Push The 2020 Corporate Tally To 147

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Default, Transition, and Recovery: Oil And Gas Defaults Continue To Climb

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Economic Research: Asia-Pacific's Recovery: The Hard Work Begins

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Default, Transition, and Recovery: Consumer And Service Sector Defaults Help Push The 2020 Corporate Tally To 147

The 2020 global corporate default tally reached 147 as of July 29, 2020. All five issuers that have defaulted since last week's report were U.S.-based:

  • New-Jersey-based specialty apparel retailer Ascena Retail Group Inc. (which also defaulted earlier this year on March 12, 2020 due to a distressed exchange)
  • Virginia-based student educational travel provider Lakeland Holdings LLC
  • New York-based party goods retailer and wholesaler Party City Holdings Inc.
  • Delaware-based promotional products supplier CB Poly Investments LLC
  • Delaware-based business and consumer services provider Never Slip Topco Inc.

With four of the five defaults this week, the consumer/services sector (which includes both consumer products and retail and restaurants issuers) has reached an all-time high of 42 defaults. The sector's 12-month-trailing speculative-grade default rate has also increased, reaching its highest level since October 2002 at 8% as of June 30, as many retailers, durables, apparel, cosmetics, and food service companies have been heavily disrupted by social distancing measures put in place to combat the spread of COVID-19 (see "Industry Top Trends Update: North America Consumer Products," published July 16, 2020).

Chart 1

image

This Week's Observations

  • The 2020 corporate default tally of 147 is significantly higher than at this point in 2019 and 2018, with only 71 and 52 defaults, respectively.
  • Year-to-date U.S. defaults (with 98) have surpassed their 2008 year-end tally of 95 but still lag the year-end tally in both 2009 and 2016, with 105 and 191.
  • In the U.S., the consumer products sector (excluding retail and restaurants) leads the U.S. defaults tally in 2020 so far, with 20, followed by the oil and gas sector, with 19 (see chart 3).
  • The 12-month-trailing speculative grade default rate for the U.S. has increased to 5.4% in June from 4.7% in May 2020, whereas the same for the Europe has increased to 3.4% from 2.8% in the same period (see table 1).

Chart 2

image

Chart 3

image

Chart 4

image

Table 1

Global Corporate Default Summary
Region 12-month-trailing speculative-grade default rate (%) 2020 year-to-date 2019 year-to-date 2019 Weakest links
U.S. 5.4 98 49 78 432
Emerging market 2.8 22 11 22 51
Europe 3.4 18 8 15 100
Other developed 5.1 9 3 3 28
Global 4.4 147 71 118 611
Note: Trailing-12-month default rates from June 30, 2019 - June 30, 2020, are preliminary and subject to change. Year-to-date data as of July 29, 2020. Weakest link data is as of June 8, 2020. 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. (A)

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. (FE Investments Group Ltd.)

New Zealand Finance companies D CCC Missed interest payments
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
4/10/2020 Confidential Confidential Media and entertainment D CCC- Confidential
4/12/2020

Pace Industries Inc.

U.S. Consumer products D NR Chapter 11
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 Missed interest payments
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
4/16/2020

O1 Properties Ltd.

Cyprus Homebuilders/real estate companies D CC Missed interest payments
4/16/2020

J.C. Penney Co. Inc.

U.S. Retail/restaurants D CCC Missed interest payments
4/17/2020

Mister Car Wash Holdings Inc.

U.S. Retail/restaurants SD CCC+ Distressed exchange
4/17/2020

Ultra Petroleum Corp.

U.S. Oil and gas D CCC- Missed interest payments
4/21/2020

Engine Holding LLC

U.S. Media and entertainment D CCC- Missed principal and interest payments
4/22/2020

The Neiman Marcus Group LLC

U.S. Retail/restaurants D CCC- Missed interest payments
4/23/2020

Northwest Acquisitions ULC

Canada Metals, mining, and steel D CCC+ Foreign Bankruptcy
4/24/2020

Diamond Offshore Drilling Inc.

U.S. Oil and gas D CC Chapter 11
4/24/2020

Enjoy S.A.

Chile Media and entertainment D B- Bankruptcy
4/28/2020

Envision Healthcare Corp. (Envision Healthcare Holdings Inc.)

U.S. Health care SD CC Distressed exchange
4/29/2020

CSM Bakery Solutions LLC

U.S. Consumer products SD CCC Distressed exchange
4/30/2020

Virgin Australia Holdings Ltd.

Australia Transportation D CC Chapter 15
5/4/2020

J. Crew Group Inc.

U.S. Consumer products D CCC- Chapter 11
5/5/2020

Evergreen Skills Lux S.ar.l.

Luxembourg High technology D CCC- Missed interest payments
5/6/2020 Confidential Confidential Media and entertainment D CCC Confidential
5/6/2020

Techniplas LLC

U.S. Capital goods D NR Chapter 11
5/7/2020

Hertz Global Holdings Inc.

U.S. Transportation SD CCC- Missed principal and interest payments
5/8/2020

Petra Diamonds Ltd.

Bermuda Metals, mining, and steel D CCC+ Missed interest payments
5/11/2020

Avianca Holdings S.A.

Panama Transportation D CCC- Chapter 11
5/11/2020

Yihua Enterprise (Group) Co. Ltd.

China Consumer products SD CCC Missed interest payments
5/12/2020

Fieldwood Energy LLC

U.S. Oil and gas D CCC Missed interest payments
5/12/2020

Revlon Inc.

U.S. Consumer products SD CC Distressed exchange
5/13/2020

Outerstuff LLC

U.S. Consumer products SD CCC Missed principal and interest payments
5/14/2020 Confidential Confidential Media and entertainment SD CCC- Confidential
5/15/2020

Extraction Oil & Gas Inc. (Extraction Oil & Gas Holdings LLC)

U.S. Oil and gas D CC Missed interest payments
5/15/2020

Forum Energy Technologies Inc.

U.S. Oil and gas SD CC Distressed exchange
5/17/2020 Confidential Confidential Transportation D NR Confidential
5/19/2020

Aeropuertos Argentina 2000 S.A.

Argentina Utilities SD CC Distressed exchange
5/19/2020

Takko Fashion S.a.r.l.

Luxembourg Consumer products SD CCC+ Missed interest payments
5/19/2020 Confidential Confidential Capital goods D NR Confidential
5/20/2020

Downstream Development Authority

U.S. Media and entertainment SD CCC Missed principal payments
5/20/2020

Equinox Holdings Inc.

U.S. Media and entertainment SD CCC Distressed exchange
5/21/2020

Akorn Inc.

U.S. Health care D CC Chapter 11
5/21/2020

Centennial Resource Development Inc.

U.S. Oil and gas SD CC Distressed exchange
5/21/2020

Guitar Center Inc. (Guitar Center Holdings Inc.)

U.S. Retail/restaurants SD CCC Distressed exchange
5/25/2020

Travelex Holdings Ltd.

U.K. Media and entertainment SD CC Missed interest payments
5/26/2020

Unit Corp.

U.S. Oil and gas D CC Chapter 11
5/27/2020

Latam Airlines Group S.A.

Chile Transportation D CCC- Chapter 11
5/27/2020

Tuesday Morning Corp.

U.S. Retail/restaurants D NR Chapter 11
6/2/2020

Grupo Famsa, S.A.B. de C.V.

Mexico Retail/restaurants SD CCC- Missed principal and interest payments
6/2/2020

Noble Corp. PLC (A)

U.K. Oil and gas SD CCC- Distressed exchange
6/3/2020

Valaris plc

U.K. Oil and gas D CCC- Missed interest payments
6/4/2020

California Pizza Kitchen Inc.,

U.S. Retail/restaurants D CCC- Missed interest payments
6/5/2020

24 Hour Fitness Worldwide Inc.

U.S. Media and entertainment D CCC+ Missed interest payments
6/5/2020

APC Automotive Technologies Intermediate Holdings, LLC

U.S. Automotive D CCC Chapter 11
6/5/2020 Confidential Confidential Consumer products SD CCC- Confidential
6/5/2020 Confidential Confidential Consumer products SD CC Confidential
6/10/2020

RGIS Holdings LLC

U.S. Consumer products D CCC- Missed interest payments
6/10/2020 Confidential Confidential Media and entertainment D CCC- Confidential
6/11/2020 Confidential Confidential Media and entertainment D CCC Confidential
6/15/2020

Calfrac Well Services Ltd. (B)

Canada Oil and gas D CCC- Missed interest payments
6/15/2020

Pyxus International Inc.

U.S. Consumer products D CCC- Chapter 11
6/15/2020

SM Energy Company

U.S. Oil and gas SD CC Distressed exchange
6/16/2020

Briggs & Stratton Corp.

U.S. Capital Goods SD CCC- Missed interest payments
6/16/2020

CSI Compressco LP

U.S. Midstream SD CC Distressed exchange
6/16/2020

Ferrellgas Partners L.P.

U.S. Midstream SD CC Missed principal payments
6/16/2020

Source Energy Services Ltd.

Canada Oil and gas D CCC- Missed interest payments
6/18/2020

Confidential

Confidential Retail/restaurants SD CCC Confidential
6/18/2020

ASP MCS Acquisition Corp.

U.S. Consumer products D CCC Missed interest payments
6/18/2020

Jo-ann Stores LLC (Jo-Ann Stores Holdings Inc)

U.S. Retail/restaurants SD CCC Distressed exchange
6/18/2020

Confidential

Confidential Homebuilders/real estate companies D CC Confidential
6/18/2020

Confidential

Confidential Retail/restaurants D CCC Confidential
6/19/2020

Chesapeake Energy Corp.

U.S. Oil and gas D CC Missed interest payments
6/19/2020

GK Holdings Inc.

U.S. Media and entertainment D CC Missed interest payments
6/23/2020

Boart Longyear Ltd.

Australia Metals, mining, and steel SD CC Distressed exchange
6/23/2020

Serta Simmons Bedding LLC

U.S. Consumer products SD CC Distressed exchange
6/23/2020

Summit Midstream Partners LP

U.S. Midstream SD CCC Distressed exchange
6/24/2020

GNC Holdings Inc.

U.S. Retail/restaurants D CC Chapter 11
6/25/2020

CEC Entertainment Inc.

U.S. Retail/restaurants D CC Chapter 11
6/25/2020

W&T Offshore Inc

U.S. Oil and gas SD CCC+ Distressed exchange
6/30/2020

Covia Holdings Corp (SCR-Sibelco NV)

U.S. Metals, mining, and steel D CCC+ Chapter 11
7/1/2020

California Resources Corp.

U.S. Oil and gas D CC Missed interest payments
7/1/2020

Grupo Aeromexico, S.A.B. de C.V.

Mexico Transportation D B- Chapter 11
7/1/2020

Grupo Posadas, S. A. B. de C. V.

Mexico Media and entertainment D CC Missed interest payments
7/2/2020

Denbury Resources Inc.

U.S. Oil and gas D CCC+ Missed interest payments
7/2/2020

Lonestar Resources U.S. Inc.,

U.S. Oil and gas D CCC- Missed interest payments
7/2/2020

Confidential

Confidential Media and entertainment SD CCC Confidential
7/2/2020

Tailored Brands Inc.,

U.S. Consumer products D CCC+ Missed interest payments
7/7/2020

Confidential

Confidential Homebuilders/real estate companies D CC Confidential
7/8/2020

PT Modernland Realty Tbk.

Indonesia Homebuilders/real estate companies SD CCC- Missed principal payments
7/10/2020

Tupperware Brands Corp.

U.S. Consumer products SD CC Distressed exchange
7/13/2020

Hi- Crush Inc.

U.S. Metals, mining, and steel D CC Chapter 11
7/16/2020

Chaparral Energy Inc.

U.S. Oil and gas D CCC- Missed interest payments
7/17/2020

Bruin E&P Partners, LLC

U.S. Oil and gas D CC Chapter 11
7/17/2020

Noble Corp. PLC (B)

U.K. Oil and gas D CCC- Missed interest payments
7/17/2020

Seadrill Partners LLC (Seadrill Ltd.)

Marshall Islands Oil and gas SD CCC Missed interest payments
7/20/2020

Confidential

Confidential Forest products and building materials SD CC Confidential
7/20/2020

Renfro Corp.

U.S. Consumer products SD CCC- Distressed exchange
7/22/2020

Global Eagle Entertainment Inc.

U.S. Telecommunications D CCC- Chapter 11
7/23/2020

Ascena Retail Group Inc. (B)

U.S. Consumer products D CCC- Chapter 11
7/23/2020

Lakeland Holdings LLC

U.S. Media and entertainment D CCC- Chapter 11
7/27/2020

Party City Holdings Inc. (PC Nextco Holdings LLC)

U.S. Retail/restaurants SD CC Distressed exchange
7/28/2020

CB Poly Investments LLC

U.S. Consumer products SD B- Distressed exchange
7/28/2020

Never Slip Topco Inc.

U.S. Consumer products D CCC Distressed exchange
NR--Not rated. SD--Selective default. Data as of July 29, 2020. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®.

Related Research

Default Studies

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

Corporate (financial and nonfinancial)
Structured finance
U.S. public finance
Sovereign and international public finance

This report does not constitute a rating action.

Credit Markets Research:Nicole Serino, New York + 1 (212) 438 1396;
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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