The 2021 global corporate default tally has increased to 24 after two companies from Europe defaulted since our last report:
- U.K.-based integrated marine service provider AI Mistral Holdco Ltd.
- One confidential issuer
European defaults are elevated, now making up nearly one-third of the total global default tally. With seven defaults so far, the region's first-quarter default tally has reached an all-time high. The proportion of defaults from Europe, at 29%, is the highest since the third quarter of 2018, at 38% (13 defaults). However, financing conditions remain largely accommodative throughout the region as the number of quarterly defaults has slowed considerably since 2020 (see chart 1).
The 12-month trailing speculative-grade default rate for Europe rose to 5.4% in February 2021 from 5.0% in January (see table 1). We expect it to rise to 6.5% by December 2021 (see "The European Speculative-Grade Corporate Default Rate Could Reach 6.5% By December 2021," Feb. 25, 2021).
This Week's Observations
- By region, the U.S. leads the global corporate default tally with 14, followed by Europe with seven.
- Three of the seven defaults from Europe resulted from distressed exchanges (see chart 6).
- By sector, consumer products lead the European default tally with two.
- The 12-month trailing speculative-grade default rate for the global energy and natural resources sector increased to 16.9% in February 2021 from 15.6% in January (see chart 5).
|Year To Date, Defaults Are Lower In 2021 (24) Than In 2020 (29)|
|Global corporate default summary|
|Region||12-month trailing speculative-grade default rate (%)||2021 YTD default tally||2020 YTD default tally||2020 default tally||Weakest links tally|
|Notes: Trailing-12-month default rates from Feb. 29, 2020-Feb. 28, 2021, are preliminary and subject to change. Other developed region consists of Australia, Canada, Japan, and New Zealand. Default counts may include confidentially rated issuers. Year-to-date data as of March 24, 2021. Weakest link data as of Jan. 31, 2021. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.|
|The 2021 Global Corporate Default Tally Rises To 24|
|U.S.||Oil and gas||SD||CC||Distressed exchange|
Promotora de Informaciones S.A.
|Spain||Media and entertainment||SD||CC||Distressed exchange|
Burger BossCo Intermediate Inc.
Riverbed Parent Inc.
|U.S.||High technology||SD||CC||Distressed exchange|
AMC Entertainment Holdings Inc.
|U.S.||Media and entertainment||SD||CC||Distressed exchange|
Awesome Acquisition Co. L.P.
Alpha Media LLC
|U.S.||Media and entertainment||D||NR||Bankruptcy|
Imagine Group LLC (The)
|U.S.||Media and entertainment||D||CCC||Distressed exchange|
|U.S.||Retail/restaurants||D||CC||Missed interest payments|
Peabody Energy Corp.
|U.S.||Metals, mining, and steel||SD||CC||Distressed exchange|
|France||Oil and gas||SD||CC||Missed principal payments|
|U.S.||Consumer products||SD||CCC-||Distressed exchange|
CatLuxe Sarl (CatLuxe Acquisition Sarl)
|Luxembourg||Consumer products||SD||CCC+||Distressed exchange|
Form Technologies LLC
|U.S.||Capital goods||SD||CC||Distressed exchange|
|Argentina||Oil and gas||SD||CC||Distressed exchange|
Sunshine 100 China Holdings Ltd.*
|Cayman Islands||Homebuilders/real estate companies||SD||CCC-||Distressed exchange|
Ensign Drilling Inc. (Ensign Energy Services Inc.)
|Canada||Oil and gas||SD||CCC+||Distressed exchange|
HighPoint Resources Corp.
|U.S.||Oil and gas||D||CC||Chapter 11|
Washington Prime Group Inc.
|U.S.||Homebuilders/real estate companies||D||CC||Missed interest payments|
AI Mistral Holdco Ltd.
|*Sunshine 100 China Holdings Ltd. is incorporated in the Cayman Islands but invests in, develops, and manages real estate properties in China. Companies incorporated in the Cayman Islands are included in the U.S. default rate computation due to its status as a U.S. tax haven. NR--Not rated. SD--Selective default. Data as of March 24, 2021. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.|
- Integrated Marine Services Provider AI Mistral Holdco Downgraded To 'SD' From 'CCC+' On Distressed Debt Restructuring, March 23, 2021
- The European Speculative-Grade Corporate Default Rate Could Reach 6.5% By December 2021, Feb. 25, 2021
- Europe's 2021 Air Passenger Traffic Likely To Stall At 30%-50% Of 2019 Level, Feb. 18, 2021
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2019 Annual Mexican National Scale Corporate And Public Finance Default And Rating Transition Study
- 2019 Annual Greater China Corporate Default And Rating Transition Study
- 2019 Annual Emerging Markets Corporate Default And Rating Transition Study
- 2019 Annual European Corporate Default And Rating Transition Study
- 2019 Annual Latin American Corporate Default And Rating Transition Study
- 2019 Annual Asia Corporate Default And Rating Transition Study
- 2019 Annual Global Financial Services Default And Rating Transition Study
- 2019 Annual U.S. Corporate Default And Rating Transition Study
- 2019 Annual Taiwan Ratings Corp. Corporate Default And Rating Transition Study
- 2019 Annual Global Corporate Default And Rating Transition Study
- Japanese Issuer Credit Rating Transitions Study 2019
- 2018 Annual Infrastructure Default And Rating Transition Study
- 2017 Annual Australia And New Zealand 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
- 2019 Annual Mexican Structured Finance Default And Rating Transition Study
- 2019 Annual European Structured Finance Default And Rating Transition Study
- 2019 Annual Global Leveraged Loan CLO Default And Rating Transition Study
- 2019 Annual Global Structured Finance Default And Rating Transition Study
- 2019 Annual Taiwan Structured Finance Default And Rating Transition Study
- 2019 Annual Japanese Structured Finance Default And Rating Transition Study
U.S. public finance
- 2019 Annual U.S. Public Finance Default And Rating Transition Study
- 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
- 2019 Annual Sovereign Default And Rating Transition Study
- 2019 Annual International Public Finance Default And Rating Transition Study
This report does not constitute a rating action.
|Credit Markets Research:||Nicole Serino, New York + 1 (212) 438 1396;|
|Sudeep K Kesh, New York (1) 212-438-7982;|
|Research Contributor:||Lyndon Fernandes, CRISIL Global Analytical Center, an S&P affiliate, Mumbai|
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