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In This List
COMMENTS

Default, Transition, and Recovery: Corporate Defaults In Europe Hit An All-Time High

COMMENTS

Default, Transition, and Recovery: Global Corporate Defaults Continue To Rise, To 194 So Far In 2020

COMMENTS

Credit Trends: Downgrade Potential Eases But Remains Above Pre-Pandemic Levels

COMMENTS

Default, Transition, and Recovery: Distressed Exchanges Boost Corporate Defaults In The Second Half Of 2020

COMMENTS

Credit Trends: U.S. Corporate Downgrades Fell To Pre-Pandemic Levels In The Third Quarter


Default, Transition, and Recovery: Corporate Defaults In Europe Hit An All-Time High

The 2020 global corporate default tally reached 159 as of Aug. 19, 2020. The issuers that defaulted are:

  • Texas-based midstream energy company Martin Midstream Partners L.P. and
  • Georgia-based metal and vinyl building products producer Omnimax International Inc.

Additionally, we have revised our default tally to account for defaults whose ratings were withdrawn prior to default, including Delaware-based in-store media solutions provider Mood Media Corp. and one confidential issuer from Europe.

Defaults in Europe have surpassed their 2009 financial crisis levels and reached a historical high of 23 defaults (see chart 1). While both the tally and default rate are high and rising, growth in the tally of speculative-grade issuers more generally will likely suppress the European default rate below its highs during the financial crisis. The number of speculative-grade issuers, particularly those in the 'B' and 'CCC' rating categories, have risen considerably in Europe and elsewhere in the last decade, characterized by low-interest rates and more aggressive financial policies pursued by many borrowers (see "Historically Low Ratings In The Run-Up To 2020 Increase Vulnerability To the COVID-19 Crisis," May 28, 2020).

Moreover, about 18.2% of speculative-grade issuers in the region are weakest links (issuers rated 'B-' or lower by S&P Global Ratings with negative outlooks or ratings on CreditWatch with negative implications), an all-time high. This is a particularly important indicator of future defaults because their default rates are typically about eight times higher on average than speculative-grade counterparts (see "The Still-High Weakest Links Tally Contracts As Defaults Rise," Aug 18, 2020).

S&P Global Ratings expects the European trailing-12-month speculative-grade corporate default rate to rise to 8.5% by June 2021 from 3.35% in June 2020 (see "Credit And Economic Deterioration Signals A Rising European Speculative-Grade Default Rate Despite Market Optimism," Aug. 18, 2020).

Chart 1

image

This Week's Observations

  • By region, the U.S. leads the default tally in 2020, with 105, followed by Europe, with 23 (see table 1).
  • By sector, oil and gas leads the default tally in both the U.S. and Europe, with 21 and seven defaults, respectively.
  • Defaults due to missing interest and principle payments are leading in 2020, with 63.
  • The week ending on Aug. 14, 2020, saw only two defaults, which is lowest weekly tally in past four months (see chart 3).

Chart 2

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Chart 3

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Chart 4

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Chart 5

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Chart 6

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Table 1

Global Corporate Default Summary
12-month-trailing speculative-grade default rate (%) Year-to-date 2020 Year-to-date 2019 2019 Weakest links
U.S. 5.9* 105 52 78 418
Emerging market 2.8 22 11 22 45
Europe 3.5* 23 8 15 99
Other developed 5.1 9 3 3 27
Global 4.4 159 74 118 589
Note: *Trailing-12-month default rates from July 31, 2019, to July 31, 2020, are preliminary and subject to change. Year-to-date data as of Aug. 19. Weakest link data is as of July 17, 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. (A) 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
7/13/2020 Confidential Confidential Oil and gas D CC Confidential
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
7/30/2020 Confidential Confidential Media and entertainment D CCC- Confidential
7/30/2020

Missouri TopCo Ltd.

U.K. Consumer products SD CCC- Distressed exchange
7/30/2020

Nostrum Oil and Gas PLC

U.K. Oil and gas SD CCC- Missed interest payments
7/30/2020 Mood Media Corp. U.S. Media and entertainment D NR Chapter 11
8/3/2020

AMC Entertainment Holdings Inc.

U.S. Media and entertainment SD CC Distressed exchange
8/4/2020 Forum Energy Technologies Inc. (B) U.S. Oil and gas SD CC Distressed exchange
8/6/2020

PIZZAEXPRESS FINANCING 1 PLC

U.K. Retail/restaurants D CC Missed interest payments
8/6/2020

Transocean Ltd.

Switzerland Oil and gas SD CCC Distressed exchange
8/10/2020

UTEX Industries Inc.

U.S. Oil and gas D CCC Missed interest payments
8/14/2020

Martin Midstream Partners L.P.

U.S. Midstream SD CC Distressed exchange
8/19/2020

Omnimax International Inc.

U.S. Forest products and building materials D CCC- Missed principal payments
NR--Not rated. SD--Selective default. Data as of Aug. 19, 2020. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®. (B) designation indicates the issuers second default for 2020.

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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