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Default, Transition, and Recovery: 2020 Annual Global Corporate Default And Rating Transition Study

The COVID-19 pandemic and lockdowns in 2020 led to one of the deepest recessions since the Great Depression roughly 90 years ago. Normally, recessions include, or are followed shortly by, marked increases in corporate defaults. Default activity in 2020 did increase, but to a lesser extent than recent recessions (see chart 1 and table 1). Corporate downgrades also increased, to near an all-time high. But in both cases, defaults and downgrades were largely limited to the lowest rating categories, resulting in generally strong ratings performance in 2020.

Chart 1

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Table 1

Global Corporate Default Summary
Year Total defaults* Investment-grade defaults Speculative-grade defaults Default rate (%) Investment-grade default rate (%) Speculative-grade default rate (%) Total debt outstanding (bil. $)
1981 2 0 2 0.15 0.00 0.63 0.06
1982 18 2 15 1.22 0.19 4.46 0.90
1983 12 1 10 0.77 0.09 2.98 0.37
1984 14 2 12 0.93 0.17 3.31 0.36
1985 19 0 18 1.13 0.00 4.37 0.31
1986 34 2 30 1.74 0.15 5.75 0.46
1987 19 0 19 0.95 0.00 2.83 1.60
1988 32 0 29 1.39 0.00 3.88 3.30
1989 44 3 35 1.79 0.22 4.70 7.28
1990 70 2 56 2.74 0.14 8.12 21.15
1991 93 2 65 3.26 0.14 11.05 23.65
1992 39 0 32 1.50 0.00 6.12 5.40
1993 26 0 14 0.60 0.00 2.51 2.38
1994 21 1 15 0.63 0.05 2.12 2.30
1995 35 1 29 1.05 0.05 3.54 8.97
1996 20 0 16 0.51 0.00 1.81 2.65
1997 23 2 20 0.63 0.08 2.01 4.93
1998 56 4 48 1.28 0.14 3.67 11.27
1999 109 5 92 2.15 0.17 5.57 39.38
2000 136 7 109 2.48 0.24 6.24 43.28
2001 229 7 173 3.79 0.23 9.90 118.79
2002 226 13 159 3.60 0.42 9.50 190.92
2003 119 3 89 1.93 0.10 5.07 62.89
2004 56 1 38 0.78 0.03 2.03 20.66
2005 40 1 31 0.60 0.03 1.51 42.00
2006 30 0 26 0.48 0.00 1.19 7.13
2007 24 0 21 0.37 0.00 0.91 8.15
2008 127 14 89 1.80 0.42 3.71 429.63
2009 268 11 224 4.19 0.33 9.95 627.70
2010 83 0 64 1.21 0.00 3.02 97.48
2011 53 1 44 0.80 0.03 1.85 84.30
2012 83 0 66 1.14 0.00 2.59 86.70
2013 81 0 64 1.06 0.00 2.31 97.29
2014 60 0 45 0.69 0.00 1.44 91.55
2015 113 0 94 1.36 0.00 2.78 110.31
2016 163 1 143 2.09 0.03 4.24 239.79
2017 95 0 83 1.21 0.00 2.47 104.57
2018 82 0 72 1.03 0.00 2.10 131.65
2019 118 2 92 1.30 0.06 2.54 183.21
2020 226 0 198 2.74 0.00 5.50 353.43
*This column includes companies that were no longer rated one year prior to default. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Broadly consistent with 2019, almost 54% of defaults in 2020 came from two sectors: consumer services and energy and natural resources (with 122 defaults combined). However, defaults from most other sectors increased as well. Seven others also had default rates in 2020 that exceeded their long-term averages--leisure time/media, transportation, telecommunications, health care/chemicals, real estate, utilities, and high technology/computers/office equipment. In fact, only four sectors had default rates in 2020 that were lower than their long-term averages (aerospace/automotive/capital goods/metal, forest and building products/homebuilders, financial institutions, and insurance) (see chart 2).

This default and rating transition study includes industrials, utilities, financial institutions (banks, brokerages, asset managers, and other financial entities), and insurance companies globally with long-term local currency ratings from S&P Global Ratings. We calculated all default rates on an issuer-weighted basis. The default rates that we refer to as weighted averages in this study use the number of issuers at the beginning of each year as the basis for each year's weight. (For a detailed explanation of our data sources and methodology, see Appendix I.)

Chart 2

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Of the 226 defaults in 2020, 198 were from companies rated as of the beginning of the year. Of the 28 defaults from companies that were not rated at the beginning of 2020, 11 were companies that had ratings withdrawn before the beginning of 2020 and 17 were companies that were first rated by S&P Global Ratings after Jan. 1, 2020. We consider companies reemerging from prior defaults to be separate entities, and their rating histories begin with the post-default rating. Of the rated defaulters at the beginning of 2020, none began the year with an investment-grade rating. The majority (94%) began the year rated in the 'B' or 'CCC'/'C' category (57% 'CCC'/'C' and 37% 'B').

The one-year Gini ratio remained high in 2020, at 86.1% (see chart 3). The Gini ratio is a measure of the rank-ordering power of ratings over a given time horizon, from one through seven years. It shows the ratio of actual rank-ordering performance to theoretically perfect rank ordering. The one-year Gini in 2020 was well above the one-year weighted average (since 1981) Gini ratio of 82.8% and was higher than the median annual Gini ratio over the last 40 years of 85.7% (see table 2 and chart 30). (For details on the Gini methodology, refer to Appendix II.)

Chart 3

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All of S&P Global Ratings Research's default studies have found a clear correlation between ratings and defaults: The higher the rating, the lower the observed frequency of default, and vice versa. Over each time span, lower ratings correspond to higher default rates (see chart 4 and chart 25), and this relationship holds true when broken out by rating modifier (see tables 24 and 26) and by region (see table 25).

As the Gini ratios show, corporate ratings also serve as effective measures of relative risk over time, particularly in low-default years. Many default studies, including this one, also look at transition rates, which gauge the degree to which ratings change--either up or down--over a particular period. Transition studies have repeatedly confirmed that higher ratings tend to be more stable and that speculative-grade ratings ('BB+' or lower) generally experience more volatility over a given time frame.

However, since the financial downturn of 2008, many high-rated companies have been downgraded, leaving, for example, exceedingly few 'AAA' rated issuers at the start of 2020. Such rating categories with smaller populations will experience high rating transition rates when even a small number of issuers are upgraded or downgraded.

Table 2

Global Average Gini Coefficients By Broad Sector (1981-2020) (%)
--Time horizon--
Sector One-year Three-year Five-year Seven-year
Global
Weighted average 82.84 75.32 71.54 69.16
Average 85.41 78.62 74.28 71.24
Standard deviation (5.49) (5.21) (5.33) (5.27)
Financial
Weighted average 80.34 70.28 62.98 57.53
Average 83.38 76.23 68.48 62.34
Standard deviation (20.24) (14.93) (16.66) (16.46)
Nonfinancial
Weighted average 81.01 72.65 68.82 66.76
Average 84.42 76.83 72.58 69.78
Standard deviation (6.05) (5.28) (5.44) (5.05)
Note: Numbers in parentheses are standard deviations. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Chart 4

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In 2020, speculative-grade rating categories had higher default rates than in 2019, with an increase in the 'BB' category to 0.93% from 0.00%, 'B' category to 3.5% from 1.5%, and 'CCC'/'C' category to 47.5% from 29.8% (see table 3).

Despite increased defaults overall, there were no defaults that began 2020 with an investment-grade rating (see table 4). All speculative-grade categories had higher default rates in 2020 than their long-term averages, though in the cases of the 'BB' and 'B' categories, these increases were relatively small. Once again, the default rate in the 'AAA' rating category was zero, consistent with historical trends.

Table 3

Global Corporate Annual Default Rates By Rating Category (%)
AAA AA A BBB BB B CCC/C
1981 0.00 0.00 0.00 0.00 0.00 2.33 0.00
1982 0.00 0.00 0.21 0.35 4.24 3.18 21.43
1983 0.00 0.00 0.00 0.34 1.16 4.70 6.67
1984 0.00 0.00 0.00 0.68 1.14 3.49 25.00
1985 0.00 0.00 0.00 0.00 1.50 6.53 15.38
1986 0.00 0.00 0.18 0.34 1.33 8.45 23.08
1987 0.00 0.00 0.00 0.00 0.38 3.13 12.28
1988 0.00 0.00 0.00 0.00 1.05 3.68 20.37
1989 0.00 0.00 0.18 0.61 0.73 3.40 33.33
1990 0.00 0.00 0.00 0.58 3.57 8.56 31.25
1991 0.00 0.00 0.00 0.55 1.69 13.84 33.87
1992 0.00 0.00 0.00 0.00 0.00 6.99 30.19
1993 0.00 0.00 0.00 0.00 0.70 2.62 13.33
1994 0.00 0.00 0.14 0.00 0.28 3.09 16.67
1995 0.00 0.00 0.00 0.17 0.99 4.59 28.00
1996 0.00 0.00 0.00 0.00 0.45 2.91 8.00
1997 0.00 0.00 0.00 0.25 0.19 3.52 12.00
1998 0.00 0.00 0.00 0.41 0.82 4.64 42.86
1999 0.00 0.17 0.18 0.20 0.95 7.31 33.82
2000 0.00 0.00 0.27 0.37 1.16 7.71 35.96
2001 0.00 0.00 0.27 0.34 2.98 11.56 45.45
2002 0.00 0.00 0.00 1.02 2.90 8.20 44.44
2003 0.00 0.00 0.00 0.23 0.59 4.07 32.93
2004 0.00 0.00 0.08 0.00 0.44 1.45 16.30
2005 0.00 0.00 0.00 0.07 0.31 1.75 9.09
2006 0.00 0.00 0.00 0.00 0.30 0.82 13.33
2007 0.00 0.00 0.00 0.00 0.20 0.25 15.24
2008 0.00 0.38 0.39 0.49 0.81 4.11 27.27
2009 0.00 0.00 0.22 0.55 0.75 11.03 49.46
2010 0.00 0.00 0.00 0.00 0.58 0.87 22.83
2011 0.00 0.00 0.00 0.07 0.00 1.68 16.42
2012 0.00 0.00 0.00 0.00 0.30 1.58 27.52
2013 0.00 0.00 0.00 0.00 0.10 1.65 24.67
2014 0.00 0.00 0.00 0.00 0.00 0.78 17.51
2015 0.00 0.00 0.00 0.00 0.16 2.42 26.67
2016 0.00 0.00 0.00 0.06 0.47 3.76 33.17
2017 0.00 0.00 0.00 0.00 0.08 1.00 26.56
2018 0.00 0.00 0.00 0.00 0.00 0.99 27.18
2019 0.00 0.00 0.00 0.11 0.00 1.49 29.76
2020 0.00 0.00 0.00 0.00 0.93 3.52 47.48
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 4

Descriptive Statistics On One-Year Global Default Rates (%)
AAA AA A BBB BB B CCC/C
Minimum 0.00 0.00 0.00 0.00 0.00 0.25 0.00
Maximum 0.00 0.38 0.39 1.02 4.24 13.84 49.46
Weighted long-term average 0.00 0.02 0.05 0.16 0.63 3.34 28.30
Median 0.00 0.00 0.00 0.06 0.58 3.44 25.78
Standard deviation 0.00 0.07 0.10 0.25 0.99 3.24 11.79
2008 default rates 0.00 0.38 0.39 0.49 0.81 4.11 27.27
Latest four quarters (2020Q1-2020Q4) 0.00 0.00 0.00 0.00 0.93 3.52 47.48
Difference between last four quarters and weighted average 0.00 (0.02) (0.05) (0.16) 0.30 0.18 19.18
# of standard deviations (0.28) (0.52) (0.61) 0.30 0.05 1.63
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

2020 Summary Findings

  • Of the 226 corporate defaults in 2020, the majority (146) were from companies in the U.S. and associated tax havens (Bermuda and the Cayman Islands). Europe followed with 42 defaults, emerging markets with 28, and the other developed region (Australia, Canada, Japan, and New Zealand) with 10.
  • Selective defaults accounted for just over half of all defaults in 2020. Distressed exchanges (which are typically selective defaults) accounted for 37.6% of all defaults, the same as missed interest or principal payments (37.6%). Various forms of bankruptcy accounted for just over 24% of all defaults.
  • The global trailing-12-month speculative-grade default rate rose to 5.5% at the end of 2020--above its annual average of 4% (since 1981)--from 2.5% in 2019. The speculative-grade default rate rose in the U.S. (to 6.6%), Europe (5.3%), emerging markets (3.1%), and other developed countries (5.9%).
  • All of the 198 defaulters that were rated by S&P Global Ratings at the beginning of the year had speculative-grade ratings at that time. Of the rated companies that defaulted in 2020 (and that were rated as of Jan. 1, 2020), 79% were rated 'B-' or lower at the start of the year.
  • Consistent with the increase in the number of defaults in 2020, the volume of debt affected by defaults almost doubled to $353.4 billion. The average amount of debt per defaulter in 2020 was the same as in 2019: $1.6 billion. This is slightly higher than the post-Lehman Bros. default (2009 onward) annual average of $1.4 billion.
  • The largest default in 2020 was from U.S.-based telecommunications provider Frontier Communications Corp., with $22.5 billion (6.3%) of the outstanding debt for the year.
  • Credit quality declined in 2020, with increasing default and downgrade rates, while the upgrade rate fell to an all-time low of 2.8%.
  • Ratings stability decreased in 2020, to 69.2%, largely the result of the downgrade rate of 18.5%, which was the highest since 2009.
  • Annual corporate bond issuance reached an all-time high in 2020, largely after the Fed and European Central Bank both created massive liquidity facilities in March, in response to the pandemic. Combined global bond issuance for nonfinancial corporates and financial services companies hit $5.7 trillion--a 27% increase from the high in 2019.
  • With these liquidity supports from central banks in place, market volatility eased after the spring. Speculative-grade bond spreads in the U.S. widened to 991 basis points (bps) on March 23, but finished the year at 434 bps.
  • The proportion of defaulters with confidential ratings in 2020 (11.5%) held steady relative to 11% in 2019.
  • Ten of the defaulters in 2020 were initially rated investment grade, and the other 216 (96% of the total) were initially rated speculative grade.
  • Of the 10 that were initially investment grade, the average time to default--the time between first rating and date of default--was 21.8 years, with an associated standard deviation of 14.1 years. In contrast, the average time to default among entities initially rated speculative grade was 6.2 years, with an associated standard deviation of 6.3 years.
  • The issuer with the longest time to default in 2020 was U.S.-based Revlon Inc., with an initial issuer credit rating of 'AA' as of Dec. 31, 1980, 39.4 years before the rating was lowered to 'SD' (selective default) in May 2020.
  • In contrast, the issuer with the shortest time to default (36 days) was a confidentially rated U.S.-based leisure/media company.
  • There were no downgrades among the eight 'AAA' rated companies in 2020.
  • At the end of 2020, speculative-grade issuers once again became the global majority, accounting for 50.3% of rated issuers, from 49.9% at the beginning of the year.
  • S&P Global Ratings assigned initial ratings to 622 issuers in 2020, down from 650 issuers in 2019 and 875 in 2018. Of these new issuers, 78% were rated speculative grade.

Annual Global Trends: Defaults Reach Their Highest Level Since 2009

The number of defaulters that began the year with active ratings more than doubled in 2020, to 198 from 94 in 2019. This was the highest count since 2016, when a wave of defaults in the energy and natural resources sector followed the prolonged collapse in oil prices that began in the second half of 2014 (see chart 5). Despite this increase, the default total in 2020 was still lower than the peak of 235 in 2009. With an increase in the number of defaults in 2020, the total amount of affected debt also rose, to $353.4 billion from $183.2 billion in 2019 (see chart 6).

As in most years, the U.S. accounted for the majority of defaults in 2020, by both count and the amount of affected debt. The U.S. has the largest number of rated corporate issuers, accounting for roughly 45.9% of the global total at the start of 2020. With its highly developed financing markets, the U.S. also has a considerably higher share of speculative-grade companies than other regions--it accounted for 52.6% of speculative-grade companies globally at the beginning of 2020.

Table 5

Largest Global Rated Defaulters By Year
Largest corporate defaulters by outstanding debt amount
Year defaulted Issuer Amount (mil. $)
1994 Confederation Life Insurance 2,415
1995 Grand Union Co./Grand Union Capital 2,163
1996 Tiphook Finance 700
1997 Flagstar Corp. 1,021
1998 Service Merchandise Co. 1,326
1999 Integrated Health Services Inc. 3,394
2000 Owens Corning 3,299
2001 Enron Corp. 10,779
2002 WorldCom Inc. 30,000
2003 Parmalat Finanziaria SpA 7,177
2004 RCN Corp. 1,800
2005 Calpine Corp. 9,559
2006 Pliant Corp. 1,644
2007 Movie Gallery Inc. 1,225
2008 Lehman Brothers Holdings Inc. 144,426
2009 Ford Motor Co. 70,989
2010 Energy Future Holdings Corp. 47,648
2011 Texas Competitive Electric Holdings Co. LLC 32,460
2012 BTA Bank J.S.C. 10,184
2013 Texas Competitive Electric Holdings Co. LLC 31,628
2014 Texas Competitive Electric Holdings Co. LLC 28,651
2015 Arch Coal Inc. 6,025
2016 Petroleos de Venezuela, S.A. 19,859
2017 Petroleos de Venezuela, S.A. 17,617
2018 iHeartCommunications Inc. 20,176
2019 Community Health Systems Inc. 23,432
2020 Frontier Communications Corp. 22,453
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Chart 5

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Chart 6

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Credit quality declined at its highest rate yet

As the default rate rose globally, credit quality also showed a net decline in 2020, with many more companies downgraded than upgraded. The upgrade rate fell to 2.8% in 2020--the lowest annual rate since 1981. Meanwhile, the downgrade rate more than doubled, to 18.5% from 9.0% in 2019. This brought the ratio of downgrades to upgrades to a historical high of 6.6 (see table 6). A ratio of 1 would indicate that the percentages of upgrades and downgrades were equal.

Table 6

Summary Of Annual Corporate Rating Changes (%)*
Year Issuers as of Jan. 1 Upgrades Downgrades§ Defaults Withdrawn ratings Changed ratings Unchanged ratings Downgrade/upgrade ratio
1981 1,349 9.86 13.27 0.15 2.08 25.35 74.65 1.35
1982 1,398 5.65 12.73 1.22 5.44 25.04 74.96 2.25
1983 1,420 7.18 11.97 0.77 5.14 25.07 74.93 1.67
1984 1,510 11.06 10.13 0.93 2.78 24.90 75.10 0.92
1985 1,598 7.76 13.70 1.13 4.01 26.60 73.40 1.77
1986 1,835 7.25 15.59 1.74 6.81 31.39 68.61 2.15
1987 1,991 7.18 12.00 0.95 9.14 29.28 70.72 1.67
1988 2,081 8.84 11.87 1.39 8.02 30.13 69.87 1.34
1989 2,122 9.71 11.07 1.79 7.59 30.16 69.84 1.14
1990 2,117 6.19 15.30 2.74 6.52 30.75 69.25 2.47
1991 2,053 6.09 14.27 3.26 3.56 27.18 72.82 2.34
1992 2,137 9.59 11.51 1.50 3.93 26.53 73.47 1.20
1993 2,321 8.57 9.26 0.60 8.23 26.67 73.33 1.08
1994 2,553 7.09 9.36 0.63 4.58 21.66 78.34 1.32
1995 2,862 9.08 9.89 1.05 4.58 24.60 75.40 1.09
1996 3,117 9.69 7.83 0.51 6.99 25.02 74.98 0.81
1997 3,478 9.23 7.96 0.63 7.48 25.30 74.70 0.86
1998 4,068 7.55 11.63 1.28 7.94 28.39 71.61 1.54
1999 4,518 5.95 12.04 2.15 8.96 29.11 70.89 2.02
2000 4,670 6.90 12.68 2.48 7.09 29.14 70.86 1.84
2001 4,745 5.96 16.65 3.79 7.48 33.89 66.11 2.79
2002 4,780 5.23 19.14 3.60 7.22 35.19 64.81 3.66
2003 4,777 6.49 14.61 1.93 7.33 30.35 69.65 2.25
2004 5,011 8.78 7.60 0.78 7.24 24.41 75.59 0.87
2005 5,301 12.88 9.22 0.60 8.39 31.11 68.89 0.72
2006 5,460 12.33 8.70 0.48 8.68 30.18 69.82 0.71
2007 5,648 13.54 9.31 0.37 10.64 33.87 66.13 0.69
2008 5,723 7.92 15.99 1.80 7.64 33.34 66.66 2.02
2009 5,607 4.82 19.12 4.19 8.79 36.92 63.08 3.97
2010 5,305 11.88 8.73 1.21 6.47 28.28 71.72 0.73
2011 5,621 12.22 11.99 0.80 7.77 32.79 67.21 0.98
2012 5,803 8.36 12.22 1.14 6.89 28.61 71.39 1.46
2013 6,036 11.45 9.34 1.06 6.69 28.55 71.45 0.82
2014 6,478 9.14 8.41 0.69 7.16 25.41 74.59 0.92
2015 6,895 7.35 11.81 1.36 8.24 28.76 71.24 1.61
2016 6,902 7.87 12.17 2.09 8.33 30.45 69.55 1.55
2017 6,877 8.91 8.71 1.21 9.07 27.90 72.10 0.98
2018 6,966 9.00 8.76 1.03 8.01 26.80 73.20 0.97
2019 7,234 6.32 9.03 1.30 7.81 24.45 75.55 1.43
2020 7,222 2.78 18.47 2.74 6.85 30.85 69.15 6.64
Weighted average 8.39 11.76 1.53 7.45 29.12 70.88 1.72
Average 8.34 11.85 1.48 6.94 28.61 71.39 1.66
Median 8.14 11.84 1.21 7.29 28.58 71.42 1.39
Standard deviation 2.36 3.14 0.98 1.86 3.39 3.39 1.11
Minimum 2.78 7.60 0.15 2.08 21.66 63.08 0.69
Maximum 13.54 19.14 4.19 10.64 36.92 78.34 6.64
*This table compares the net change in ratings from the first to the last day of each year. All intermediate ratings are disregarded. §Excludes downgrades to 'D', shown separately in the default column. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.
But large rating actions remain less common

With an increase in the proportion of downgrades during the year, the number of large rating changes (which we define as more than six notches) increased in 2020. For the full year, there were three large downgrades (and two large upgrades), compared with two downgrades in 2019 (see chart 7). For these counts of large downgrades, we include movements to 'D' (default) along with what we normally report as downgrades (that is, downward movements between active ratings). Three of the large downgrades in 2020 were from Kazakhstan-based Grain Insurance Co. JSC, U.A.E-based NMC Health PLC, and U.S.-based Garrett Motion Inc. that defaulted during the year. The two upgrades are U.S.-based Noble Energy Inc. and Infor Inc.

Chart 7

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Companies that experience large downgrades are often outliers, especially in years of high credit stability. The average number of notches for an upgrade moved to 1.19 in 2020, while downgrades remained at an average of 1.46 notches--the highest rate since 2010 (when the average was 1.52 notches) (see chart 8).

Chart 8

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Annual speculative-grade default rates increased in all major regions in 2020, relative to 2019. All four major regions also saw their 2020 speculative-grade default rates rise above their long-term annual averages (see table 7 and chart 21).

Table 7

Annual Corporate Speculative-Grade Default Rate By Geographic Region (%)
Year U.S. and tax havens* Europe§ Emerging markets Other†
1981 0.63 0.00 N/A 0.00
1982 4.49 0.00 N/A 0.00
1983 3.02 0.00 N/A 0.00
1984 3.36 0.00 N/A 0.00
1985 4.47 0.00 N/A 0.00
1986 5.84 0.00 N/A 0.00
1987 2.87 0.00 N/A 0.00
1988 3.93 0.00 N/A 0.00
1989 4.36 0.00 N/A 37.50
1990 7.94 0.00 N/A 28.57
1991 10.73 50.00 N/A 25.00
1992 6.27 0.00 N/A 0.00
1993 2.41 20.00 0.00 0.00
1994 2.22 0.00 0.00 0.00
1995 3.66 9.09 0.00 0.00
1996 1.86 0.00 0.00 2.70
1997 2.18 0.00 0.00 1.92
1998 3.26 0.00 8.67 1.43
1999 5.25 6.32 7.69 4.40
2000 7.38 2.56 1.67 6.59
2001 10.63 8.46 6.34 12.36
2002 7.25 12.59 17.79 5.94
2003 5.60 3.73 3.95 4.76
2004 2.45 1.60 0.85 1.99
2005 2.02 0.94 0.25 1.30
2006 1.38 1.79 0.44 0.76
2007 1.02 0.96 0.20 2.26
2008 4.31 2.49 2.43 3.88
2009 11.81 8.59 5.52 9.68
2010 3.47 1.02 1.56 8.04
2011 2.16 1.59 0.48 6.19
2012 2.66 2.23 2.65 2.36
2013 2.19 3.42 2.02 2.01
2014 1.61 0.98 1.06 2.87
2015 2.86 2.12 3.09 2.84
2016 5.21 1.94 3.44 6.29
2017 3.09 2.57 0.97 3.05
2018 2.41 1.94 1.37 3.29
2019 3.10 2.22 1.79 1.30
2020 6.63 5.29 3.13 5.88
Average 4.20 3.01 3.09 4.16
Median 3.31 2.12 1.79 3.05
Standard deviation 2.67 3.05 3.87 2.87
Minimum 0.63 0.00 0.00 0.76
Maximum 11.81 12.59 17.79 12.36
Note: Descriptive statistics for regions other than U.S. calculated from 1996 to 2020 due to sample size considerations. *U.S., Bermuda, and Cayman Islands. §Austria, Belgium, British Virgin Islands, Bulgaria, Channel Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, and U.K. †Australia, Canada, Japan, and New Zealand. N/A--Not available. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.
The road to default is dominated by lower ratings

Our data on defaulted corporate issuers globally shows that defaults among speculative-grade entities tend to be clustered in the third year after the initial rating, particularly in the 'B' rating category (see chart 9). For example, among defaulters that were rated 'B' at origination, the default rate climbs to a high of 18.3% in the third year and decelerates thereafter.

Defaulted issuers initially rated 'BB' show a similar pattern but peak a little later, in the fourth year. Defaulters initially rated 'CCC' show the reverse pattern, with the highest default rate observed in the first year, which is not surprising given the low rating and S&P Global Ratings' associated criteria (see "Criteria For Assigning ‘CCC+’, ‘CCC’, ‘CCC-‘, And ‘CC’ Ratings," Oct. 1, 2012).

Chart 9

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In 2020, 216 of the 226 defaults, or 96%, were from companies originally rated speculative grade, which is nearly eight percentage points higher than the long-term average of 88.3%. In years with lower-than-average default rates, often more than 90% of defaulters were initially rated speculative grade, as reflected in the rating path observed for defaulters in the trailing 12 quarters (see chart 10). The median rating for all recently defaulted entities was solidly in the speculative-grade category in the seven years preceding default, and for all of that period, it was at least one notch below that of the long-term equivalent.

Financial services companies are typically more sensitive to sudden declines in investor and stakeholder confidence than nonfinancial companies, which can contribute to a rapid decline in funding liquidity and credit quality. In turn, this can result in a relatively fast descent into default (see chart 11). This was especially evident during the global financial crisis, when many highly rated banks defaulted within a short amount of time after initial downgrades.

Over the long term (since 1981), financial services defaulters show a median rating of 'BB+' five years prior to default. But over the past three years--now that more than a decade has passed since the financial crisis of 2008-2009--financial services defaulters show a median rating in the 'B' category five years prior to default.

Historically, nonfinancial defaulters tend to have a much smoother and shorter path to default (see chart 12). One key reason is that financial services companies typically start with investment-grade ratings, while most nonfinancial issuers have speculative-grade initial ratings, particularly over the past 10 years.

A major difference between financial and nonfinancial companies is the incidence of default. Defaults are much less frequent for financial services companies than for nonfinancials, which can allow outliers to bias the averages. For instance, in the three years ended Dec. 31, 2020, 402 nonfinancial companies defaulted, while only 24 financials did. For both broad categories over the past three years, all of these defaulters were rated in the lowest rating categories several years ahead of their eventual default.

Chart 10

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Chart 11

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Chart 12

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Some issuers default after S&P Global Ratings no longer rates them. We make our best effort to capture such defaults in the database, and we include an entity in the annual default rate calculations if it was rated as of Jan. 1 in the year of default. If, however, S&P Global Ratings withdrew the rating prior to Jan. 1 of the year of default, we do not include the issuer in the default rate calculation in that year. Although defaulters that are not rated (NR) are not always captured in the default rate calculations for the year of default, we do capture them in the longer-term cumulative default rate statistics, which are tied back to the year in which defaulters were last rated.

Of the defaulted companies in 2020, 7.5% were unrated just prior to default, which is well below the long-term percentage of 16.2% (see chart 13). All of the defaulters in 2020 with active ratings immediately prior to default were rated in the lowest rating categories. Specifically, 87.6% were rated 'CCC+' or lower just prior to default, which is much higher than the 69.4% long-term average.

Chart 13a

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Chart 13b

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Table 8 provides a list of all the publicly rated companies that defaulted in 2020. For additional details on the 2020 defaulters, see Appendix III.

Table 8

2020 Global Publicly Rated Corporate Defaults
Company name Reason for default Country Industry Debt amount outstanding (mil. $) Default date Rating one year prior to default Rating three years prior to default First rating Date of first rating

Constellis Holdings LLC

Missed principal U.S. Aerospace/automotive/capital goods/metal 1,272.0 1/2/2020 B B B 6/10/2014

TOMS Shoes LLC

Distressed exchange U.S. Consumer/service sector 306.5 1/7/2020 CCC+ B- B 10/9/2014

SAL Acquisition Corp.

Missed interest U.S. Consumer/service sector 740.0 1/9/2020 CCC+ B B 11/10/2016

Lecta S.A.

Missed interest Luxembourg Forest and building products/homebuilders 668.4 1/13/2020 B B BB- 1/29/2007

Qinghai Provincial Investment Group Co. Ltd.

Missed interest China Energy and natural resources 850.0 1/14/2020 B+ - BB- 2/7/2017

Krystal Co. (The)

Chapter 11 U.S. Consumer/service sector 0.0 1/19/2020 NR NR B+ 9/8/1997

Panda Green Energy Group Ltd.

Distressed exchange Bermuda Utilities 350.0 1/21/2020 CCC+ BB- BB- 10/30/2016

Deoleo S.A.

Distressed exchange Spain Consumer/service sector 665.1 1/22/2020 CCC+ B- B 8/1/2014

Doncasters Group Ltd.

Distressed exchange U.K. Aerospace/automotive/capital goods/metal 1,118.1 1/29/2020 CCC+ B B 3/13/2013

Pinnacle Operating Corp.

Distressed exchange U.S. Health care/chemicals 846.0 1/30/2020 CCC+ - CCC+ 3/16/2017

Commercial Barge Line Co.

Chapter 11 U.S. Transportation 1,150.0 2/7/2020 CCC+ - B- 2/22/2017

RentPath LLC

Chapter 11 U.S. Leisure time/media 0.0 2/12/2020 CCC+ B BB 4/22/1992

The McClatchy Co.

Chapter 11 U.S. Leisure time/media 710.0 2/13/2020 CCC+ B- CC 6/30/2009

NPC International Inc.

Missed interest U.S. Consumer/service sector 950.0 2/14/2020 B- B- B+ 4/5/2006

Moby SpA

Distressed exchange Italy Transportation 607.0 2/14/2020 CCC- B+ B+ 3/11/2016

Pier 1 Imports Inc.

Chapter 11 U.S. Consumer/service sector 200.0 2/18/2020 CCC+ B B+ 4/10/2014

Tunghsu Group Co. Ltd.

Missed principal/interest China High tech/computers/office equipment 390.0 2/21/2020 B- - B+ 5/31/2017

VIP Cinema Holdings Inc.

Chapter 11 U.S. Consumer/service sector 230.0 2/24/2020 B- B B 2/8/2017

Calfrac Well Services Ltd.

Distressed exchange Canada Energy and natural resources 650.0 2/25/2020 B- CCC+ B+ 1/29/2007

PFS Holding Corp.

Missed interest U.S. Consumer/service sector 390.0 2/28/2020 CCC- B- B 1/23/2014

Pioneer Energy Services Corp.

Chapter 11 U.S. Energy and natural resources 425.0 3/3/2020 CCC+ B- B 2/26/2010

Bluestem Brands Inc.

Chapter 11 U.S. Consumer/service sector 0.0 3/9/2020 CCC B B 11/13/2013

Ascena Retail Group Inc.

Distressed exchange U.S. Consumer/service sector 1,800.0 3/12/2020 B BB- BB- 5/22/2012

Optimas OE Solutions Holding LLC

Distressed exchange U.S. Aerospace/automotive/capital goods/metal 0.0 3/12/2020 B- B- B 4/20/2015

Frontier Communications Corp.

Missed interest U.S. Telecommunications 22,452.8 3/16/2020 CCC+ B+ AA+ 12/31/1980

Internap Holding LLC

Chapter 11 U.S. Telecommunications 470.0 3/17/2020 B B B 11/14/2013

Geo Energy Resources Ltd.

Distressed exchange Singapore Energy and natural resources 300.0 3/19/2020 B - B 7/7/2017

Grain Insurance Co. JSC

Missed interest Kazakhstan Insurance 0.0 3/20/2020 B B B 11/8/2012

Yida China Holdings Ltd.

Distressed exchange Cayman Islands Real estate 300.0 3/27/2020 CCC+ - B 4/10/2017

Optiv Inc.

Distressed exchange U.S. High tech/computers/office equipment 1,030.0 3/27/2020 B- B B 1/8/2017

Whiting Petroleum Corp.

Chapter 11 U.S. Energy and natural resources 6,436.9 4/1/2020 BB BB- B+ 4/29/2004

Steak n Shake Inc.

Distressed exchange U.S. Consumer/service sector 220.0 4/1/2020 CCC B- B 10/6/2011

PGX Holdings Inc.

Missed principal/interest U.S. Consumer/service sector 555.0 4/1/2020 CCC+ B B 9/10/2014

KCA DEUTAG Alpha Ltd.

Missed interest U.K. Energy and natural resources 1,685.0 4/2/2020 B- CCC+ B- 4/12/2016

Cirque Du Soleil Group

Missed principal/interest Canada Leisure time/media 1,085.0 4/3/2020 B B B 6/9/2015

New Millennium Holdco Inc.

Missed principal/interest U.S. Health care/chemicals 600.0 4/3/2020 CCC+ CCC+ B- 6/17/2016

FE Investments Ltd.

Missed interest New Zealand Financial institutions 0.0 4/6/2020 B B B 3/21/2014

BW Homecare Holdings LLC

Distressed exchange U.S. Health care/chemicals 935.0 4/6/2020 B- - B- 7/20/2018

Jason Inc.

Missed interest U.S. Aerospace/automotive/capital goods/metal 445.5 4/7/2020 B B B+ 6/15/2000

Quorum Health Corp.

Chapter 11 U.S. Health care/chemicals 942.5 4/7/2020 CCC+ B- B 3/24/2016

Gavilan Resources LLC

Missed interest U.S. Energy and natural resources 450.0 4/7/2020 B- B B 2/14/2017

Speedcast International Ltd.

Missed principal/interest Australia Telecommunications 600.0 4/7/2020 BB- - BB- 4/19/2018

TNT Crane & Rigging LLC

Missed interest U.S. Aerospace/automotive/capital goods/metal 685.0 4/8/2020 CCC+ CCC+ B 11/7/2013

SPR Holdings LLC

Missed interest U.S. Energy and natural resources 1,957.6 4/8/2020 - - CCC+ 11/20/2019

Vestel Elektronik Sanayi Ve Ticaret A.S.

Distressed exchange Turkey High tech/computers/office equipment 0.0 4/10/2020 CCC+ B- B+ 6/9/2000

Pace Industries Inc.

Chapter 11 U.S. Aerospace/automotive/capital goods/metal 0.0 4/12/2020 NR NR B 12/13/1993

Libbey Inc.

Missed principal U.S. Consumer/service sector 440.0 4/14/2020 B BB- B 11/12/2009

LSC Communications Inc.

Chapter 11 U.S. Leisure time/media 1,062.5 4/14/2020 B+ B+ B+ 9/12/2016

NMC Health PLC

Missed interest U.A.E. Health care/chemicals 400.0 4/14/2020 BB+ - BB+ 4/20/2018

Intelsat S.A.

Missed interest Luxembourg Telecommunications 18,535.0 4/15/2020 CCC+ - CCC+ 7/18/2018

J.C. Penney Co. Inc.

Missed interest U.S. Consumer/service sector 4,768.1 4/16/2020 CCC+ B+ A+ 12/31/1980

O1 Properties Ltd.

Missed interest Cyprus Real estate 552.1 4/16/2020 CCC B+ B+ 7/1/2013

Ultra Petroleum Corp.

Missed interest U.S. Energy and natural resources 3,147.0 4/17/2020 CCC+ - CCC+ 3/21/2019

Mister Car Wash Holdings Inc.

Distressed exchange U.S. Consumer/service sector 875.0 4/17/2020 B- B- B- 9/9/2014

Engine Holding LLC

Missed principal/interest U.S. Leisure time/media 259.0 4/21/2020 CCC - CCC+ 11/19/2018

Neiman Marcus Group LTD LLC

Missed interest U.S. Consumer/service sector 6,251.1 4/22/2020 - - CCC 6/14/2019

Northwest Acquisitions ULC

Foreign bankruptcy Canada Energy and natural resources 750.0 4/23/2020 B+ - B+ 10/2/2017

Diamond Offshore Drilling Inc.

Chapter 11 U.S. Energy and natural resources 4,350.0 4/24/2020 B BB- A- 1/29/1997

Enjoy S.A.

Bankruptcy Chile Leisure time/media 300.0 4/24/2020 B - B- 5/11/2017

Envision Healthcare Corp.

Distressed exchange U.S. Health care/chemicals 6,975.0 4/28/2020 B+ NR B+ 1/11/2005

CSM Bakery Solutions LLC

Default U.S. Consumer/service sector 1,060.0 4/29/2020 CCC+ CCC+ B 5/17/2013

Virgin Australia Holdings Ltd.

Chapter 15 Australia Transportation 1,036.0 4/30/2020 B+ B+ B+ 11/9/2014

J. Crew Group Inc.

Chapter 11 U.S. Consumer/service sector 1,817.0 5/4/2020 CCC - CCC+ 7/14/2017

Evergreen Skills Lux S.ar.l.

Missed interest Luxembourg High tech/computers/office equipment 2,115.0 5/5/2020 CCC+ B- B- 9/17/2014

Techniplas LLC

Chapter 11 U.S. Aerospace/automotive/capital goods/metal 0.0 5/6/2020 CCC+ B B 4/24/2015

Hertz Global Holdings Inc.

Chapter 11 U.S. Transportation 8,033.8 5/7/2020 B+ B+ B 5/22/2009

Petra Diamonds Ltd.

Missed interest Bermuda Energy and natural resources 650.0 5/8/2020 B- B+ B+ 5/15/2015

Avianca Holdings S.A.

Chapter 11 Panama Transportation 1,595.0 5/11/2020 - - B- 12/20/2019

Yihua Enterprise (Group) Co. Ltd.

Missed interest China Consumer/service sector 0.0 5/11/2020 B- - B 9/11/2017

Revlon Inc.

Distressed exchange U.S. Consumer/service sector 2,750.0 5/12/2020 CCC+ B+ AA 12/31/1980

Fieldwood Energy LLC

Missed interest U.S. Energy and natural resources 1,660.2 5/12/2020 B- - B- 4/23/2018

Outerstuff LLC

Missed principal/interest U.S. Consumer/service sector 255.0 5/13/2020 B- B+ B+ 7/8/2014

Forum Energy Technologies Inc.

Distressed exchange U.S. Energy and natural resources 400.0 5/15/2020 B B BB 9/25/2013

Extraction Oil & Gas Inc.

Missed interest U.S. Energy and natural resources 950.0 5/15/2020 - - B- 12/19/2019

Aeropuertos Argentina 2000 S.A.

Distressed exchange Argentina Transportation 750.0 5/19/2020 B+ B+ B 11/26/2010

Takko Fashion S.a.r.l.

Missed interest Luxembourg Consumer/service sector 557.8 5/19/2020 B- CCC+ B 3/15/2013

Equinox Holdings Inc.

Distressed exchange U.S. Leisure time/media 1,361.1 5/20/2020 B B B 11/25/2003

Downstream Development Authority

Missed principal U.S. Leisure time/media 555.0 5/20/2020 B B B- 7/13/2007

Guitar Center Inc.

Distressed exchange U.S. Consumer/service sector 946.0 5/21/2020 CCC+ - CCC+ 4/18/2018

Akorn Inc.

Chapter 11 U.S. Health care/chemicals 1,045.0 5/21/2020 B- B+ B+ 10/16/2013

Centennial Resource Development Inc.

Distressed exchange U.S. Energy and natural resources 1,027.1 5/21/2020 B+ - B+ 11/28/2018

Travelex Holdings Ltd.

Missed interest U.K. Leisure time/media 502.0 5/25/2020 B- B- B 8/8/2013

Unit Corp.

Chapter 11 U.S. Energy and natural resources 650.0 5/26/2020 B+ B+ BB- 5/9/2011

Tuesday Morning Corp.

Chapter 11 U.S. Consumer/service sector 0.0 5/27/2020 NR NR B+ 11/19/1997

Latam Airlines Group S.A.

Chapter 11 Chile Transportation 1,800.0 5/27/2020 BB- BB- BB 6/10/2013

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

Missed principal Mexico Consumer/service sector 80.9 6/2/2020 B- B B 7/12/2010

Noble Corporation PLC

Distressed exchange U.K. Energy and natural resources 5,200.0 6/2/2020 B - B 8/31/2018

Valaris plc

Missed interest U.K. Energy and natural resources 11,050.0 6/3/2020 B- BB BBB+ 1/7/2010

California Pizza Kitchen Inc.

Missed interest U.S. Consumer/service sector 395.0 6/4/2020 B- B- B 2/16/2012

24 Hour Fitness Worldwide Inc.

Missed interest U.S. Leisure time/media 1,470.0 6/5/2020 B B B+ 9/17/1999

APC Automotive Technologies Intermediate Holdings LLC

Chapter 11 U.S. Aerospace/automotive/capital goods/metal 347.9 6/5/2020 - - CCC 11/18/2019

RGIS Holdings LLC

Missed interest U.S. Consumer/service sector 695.0 6/10/2020 CCC+ B- B- 4/10/2007

Pyxus International Inc.

Chapter 11 U.S. Consumer/service sector 1,055.0 6/15/2020 CCC+ CCC+ BB 5/2/1991

Calfrac Well Services Ltd.§

Missed interest Canada Energy and natural resources 650.0 6/15/2020 - - CCC- 2/28/2020

SM Energy Co.

Distressed exchange U.S. Energy and natural resources 3,097.0 6/15/2020 BB- BB- BB- 3/29/2007

Ferrellgas Partners L.P.

Missed principal U.S. Utilities 2,532.0 6/16/2020 CCC B B+ 4/19/1996

Briggs & Stratton Corp.

Missed interest U.S. Aerospace/automotive/capital goods/metal 225.0 6/16/2020 BB- BB BBB+ 4/17/1997

CSI Compressco LP

Distressed exchange U.S. Energy and natural resources 905.5 6/16/2020 B- B- B 7/21/2014

Source Energy Services Ltd.

Missed interest Canada Energy and natural resources 158.0 6/16/2020 B - B 5/23/2018

Jo-ann Stores LLC

Distressed exchange U.S. Consumer/service sector 1,130.0 6/18/2020 B B BB- 6/18/1982

ASP MCS Acquisition Corp.

Missed interest U.S. Consumer/service sector 490.0 6/18/2020 CCC+ B B 5/2/2017

Chesapeake Energy Corp.

Missed interest U.S. Energy and natural resources 11,629.8 6/19/2020 - - CCC 1/17/2020

GK Holdings Inc.

Missed interest U.S. Leisure time/media 245.0 6/19/2020 CCC B- B+ 1/6/2015

Boart Longyear Ltd.

Distressed exchange Australia Energy and natural resources 488.0 6/23/2020 CCC+ - CCC+ 9/13/2017

Serta Simmons Bedding LLC

Distressed exchange U.S. Consumer/service sector 2,400.0 6/23/2020 CCC+ B B 9/7/2012

Summit Midstream Partners LP

Distressed exchange U.S. Energy and natural resources 1,100.0 6/23/2020 BB- B+ B+ 6/5/2013

GNC Holdings Inc.

Chapter 11 U.S. Consumer/service sector 1,354.3 6/24/2020 CCC+ - CCC+ 2/14/2018

W&T Offshore Inc.

Distressed exchange U.S. Energy and natural resources 0.0 6/25/2020 B- CCC CCC 9/13/2016

CEC Entertainment Inc.

Chapter 11 U.S. Consumer/service sector 1,129.0 6/25/2020 B- B B 2/4/2014

Covia Holdings Corp

Chapter 11 U.S. Energy and natural resources 1,650.0 6/30/2020 BB- - BB 5/7/2018

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

Missed interest Mexico Leisure time/media 400.0 7/1/2020 B+ B+ BB- 7/15/2004

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

Chapter 11 Mexico Transportation 400.0 7/1/2020 - - BB- 1/24/2020

California Resources Corp.

Missed interest U.S. Energy and natural resources 8,429.0 7/1/2020 CCC+ CCC+ CCC+ 9/9/2016

Denbury Resources Inc.

Missed interest U.S. Energy and natural resources 8,169.8 7/2/2020 CCC+ - CCC+ 7/2/2019

Tailored Brands Inc.

Missed interest U.S. Consumer/service sector 1,500.0 7/2/2020 B+ B B 2/18/2016

Lonestar Resources U.S. Inc.

Missed interest U.S. Energy and natural resources 250.0 7/2/2020 B- - B- 8/11/2017

PT Modernland Realty Tbk.

Missed principal/interest Indonesia Real estate 390.0 7/8/2020 B B B 7/28/2013

Tupperware Brands Corp.

Distressed exchange U.S. Consumer/service sector 600.0 7/10/2020 BBB- BBB- BBB+ 6/19/1996

Hi- Crush Inc.

Chapter 11 U.S. Energy and natural resources 450.0 7/13/2020 B- B- B+ 4/9/2014

Chaparral Energy Inc.

Missed interest U.S. Energy and natural resources 300.0 7/16/2020 CCC+ - B- 6/19/2018

Seadrill Partners LLC

Missed interest Marshall Islands Energy and natural resources 2,900.0 7/17/2020 CCC+ CCC+ BB- 6/9/2014

Bruin E&P Partners LLC

Chapter 11 U.S. Energy and natural resources 600.0 7/17/2020 B - B 7/16/2018

Noble Corporation PLC§

Missed interest U.K. Energy and natural resources 5,200.0 7/17/2020 - - CCC- 6/5/2020

Renfro Corp.

Distressed exchange U.S. Consumer/service sector 230.1 7/20/2020 B B B 9/11/2006

Global Eagle Entertainment Inc.

Chapter 11 U.S. Telecommunications 585.0 7/22/2020 CCC B B+ 12/1/2016

Ascena Retail Group Inc.§

Chapter 11 U.S. Consumer/service sector 1,800.0 7/23/2020 - - CCC- 3/16/2020

Lakeland Holdings LLC

Chapter 11 U.S. Leisure time/media 655.0 7/23/2020 B - B 11/28/2017

Party City Holdings Inc.

Distressed exchange U.S. Consumer/service sector 2,223.0 7/27/2020 B+ B+ B 7/9/2012

Never Slip Topco Inc.

Distressed exchange U.S. Consumer/service sector 283.0 7/28/2020 CCC+ B- B 10/30/2015

CB Poly Investments LLC

Distressed exchange U.S. Consumer/service sector 917.0 7/28/2020 B B B 7/27/2016

Missouri TopCo Ltd.

Distressed exchange U.K. Consumer/service sector 593.2 7/30/2020 B- CCC+ B+ 3/18/2010

Nostrum Oil and Gas PLC

Missed interest U.K. Energy and natural resources 2,085.0 7/30/2020 CCC+ B B- 4/22/2010

Mood Media Corp.

Chapter 11 U.S. Leisure time/media 0.0 7/30/2020 CCC - CCC 7/1/2019

AMC Entertainment Holdings Inc.

Distressed exchange U.S. Leisure time/media 6,707.5 8/3/2020 B B+ B 6/8/2007

Forum Energy Technologies Inc.§

Distressed exchange U.S. Energy and natural resources 715.5 8/4/2020 - - CCC- 6/18/2020

PIZZAEXPRESS FINANCING 1 PLC

Missed interest U.K. Consumer/service sector 874.1 8/6/2020 - - CCC- 12/17/2019

Transocean Ltd.

Distressed exchange Switzerland Energy and natural resources 11,006.0 8/6/2020 B- - B- 8/30/2018

UTEX Industries Inc.

Missed interest U.S. Energy and natural resources 742.0 8/10/2020 CCC+ CCC+ B 3/22/2013

Martin Midstream Partners L.P.

Distressed exchange U.S. Energy and natural resources 745.7 8/14/2020 B B B+ 3/17/2010

Omnimax International Inc.

Missed principal U.S. Forest and building products/homebuilders 385.0 8/19/2020 CCC+ B- B- 7/28/2009

Northwest Hardwoods Inc.

Missed interest U.S. Forest and building products/homebuilders 435.0 8/21/2020 CCC B- B 7/9/2014

KCIBT Holdings LP

Distressed exchange U.S. Consumer/service sector 600.0 8/24/2020 B- B B 5/15/2017

Town Sports International Holdings Inc.

Missed principal U.S. Leisure time/media 340.0 8/26/2020 B- CCC+ CCC+ 3/10/2016

SAExploration Holdings Inc.

Chapter 11 U.S. Energy and natural resources 0.0 8/27/2020 NR NR B- 9/10/2015

Shiloh Industries Inc.

Chapter 11 U.S. Aerospace/automotive/capital goods/metal 0.0 8/30/2020 NR NR BB- 7/26/2000

Boardriders Inc.

Distressed exchange U.S. Consumer/service sector 861.0 9/4/2020 B- CCC+ B- 4/8/2016

Premier Brands Group Holdings LLC

Missed principal U.S. Consumer/service sector 325.0 9/4/2020 B- - B- 3/11/2019

Swissport Group S.a.r.l

Distressed exchange Luxembourg Transportation 1,868.5 9/9/2020 B- B B 11/18/2015

MAI Holdings Inc.

Distressed exchange U.S. Aerospace/automotive/capital goods/metal 135.0 9/9/2020 CCC - B 5/31/2018

iQor Holdings Inc.

Chapter 11 U.S. Consumer/service sector 820.0 9/10/2020 CCC B B 2/1/2011

Distribuidora Internacional de Alimentacion S.A.

Distressed exchange Spain Consumer/service sector 710.9 9/15/2020 CCC BBB- BBB- 6/2/2014

Oasis Petroleum Inc.

Missed interest U.S. Energy and natural resources 2,475.0 9/18/2020 B+ B+ B 1/25/2011

PGS ASA

Missed principal Norway Energy and natural resources 0.0 9/21/2020 NR CCC+ CCC+ 1/11/2017

Technicolor S.A.

Distressed exchange France High tech/computers/office equipment 1,674.6 9/23/2020 B BB- CCC- 6/1/2010

FTS International Inc.

Chapter 11 U.S. Energy and natural resources 1,050.0 9/23/2020 B B- CCC+ 7/20/2016

Garrett Motion Inc.

Chapter 11 U.S. Aerospace/automotive/capital goods/metal 2,157.1 9/24/2020 BB- - BB- 11/12/2018

Summit Midstream Partners LP§

Distressed exchange U.S. Energy and natural resources 1,100.0 9/25/2020 - - CCC 8/5/2020

Cassini SAS

Foreign bankruptcy France Leisure time/media 767.0 9/28/2020 B - B 5/8/2019

Jill Acquisition LLC

Distressed exchange U.S. Consumer/service sector 290.0 10/1/2020 B- - B 3/23/2018

Toro Private Holdings I Ltd.

Distressed exchange U.K. Transportation 4,330.0 10/1/2020 B - B 7/2/2019

Ruby Tuesday Inc.

Chapter 11 U.S. Consumer/service sector 0.0 10/7/2020 NR CCC+ B 7/19/2012

TMK Hawk Parent Corp.

Distressed exchange U.S. Consumer/service sector 820.0 10/7/2020 CCC+ B B 9/9/2014

Ascent Resources Utica Holdings LLC

Distressed exchange U.S. Energy and natural resources 2,100.0 10/8/2020 B+ B- B- 3/22/2017

Anchor Glass Container Corp.

Distressed exchange U.S. Aerospace/automotive/capital goods/metal 800.0 10/9/2020 CCC+ B B+ 5/8/2014

Oi S.A.

Distressed exchange Brazil Telecommunications 1,653.6 10/9/2020 B - CCC+ 3/22/2018

MD America Energy LLC

Chapter 11 U.S. Energy and natural resources 0.0 10/12/2020 B- B- B- 7/14/2016

Mallinckrodt plc

Chapter 11 Ireland Health care/chemicals 6,312.0 10/13/2020 - - CCC 12/10/2019

Banco Hipotecario S.A.

Distressed exchange Argentina Financial institutions 350.0 10/14/2020 B- B B- 4/25/2009

Codere S.A.

Distressed exchange Spain Leisure time/media 984.7 10/15/2020 B- B B 9/29/2016

Gulfport Energy Corp.

Missed interest U.S. Energy and natural resources 2,050.0 10/16/2020 B+ B+ B- 10/11/2012

Corp Group Banking S.A.

Missed interest Chile Financial institutions 500.0 10/16/2020 CCC+ B- BB 1/18/2013

Alliance HealthCare Services

Distressed exchange U.S. Health care/chemicals 650.0 10/19/2020 B- B+ B 7/28/1987

Central Security Group Inc.

Distressed exchange U.S. Consumer/service sector 450.0 10/19/2020 B- B- B- 9/11/2014

SAS AB

Distressed exchange Sweden Transportation 0.0 10/28/2020 B+ B BB 9/4/2007

PT Alam Sutera Realty Tbk.

Distressed exchange Indonesia Real estate 545.0 10/28/2020 B- B B 3/12/2012

Selecta Group B.V.

Distressed exchange Netherlands Consumer/service sector 1,731.5 10/28/2020 B B B+ 7/16/2014

Nabors Industries Ltd.

Distressed exchange Bermuda Energy and natural resources 5,242.0 10/30/2020 BB- BB BBB 4/11/2013

Hema B.V.

Distressed exchange Netherlands Consumer/service sector 990.0 10/30/2020 B- B- B+ 7/14/2014

Pacific Drilling S.A.

Chapter 11 Luxembourg Energy and natural resources 0.0 10/30/2020 CCC+ - CCC+ 11/20/2018

CBL & Associates Properties Inc.

Chapter 11 U.S. Real estate 0.0 11/2/2020 B+ BBB- BBB- 9/15/2015

Nine Energy Service Inc.

Distressed exchange U.S. Energy and natural resources 400.0 11/5/2020 B- - B 10/15/2018

CDRH Parent Inc.

Distressed exchange U.S. Health care/chemicals 895.0 11/6/2020 CCC+ B- B 6/9/2014

Bahia de las Isletas S.L.

Missed interest Spain Transportation 691.7 11/11/2020 B+ B+ B+ 7/19/2016

IRSA Inversiones y Representaciones S.A.

Distressed exchange Argentina Real estate 360.0 11/12/2020 B- B BB 6/1/1999

Transocean Ltd.§

Distressed exchange Switzerland Energy and natural resources 12,944.0 11/16/2020 - - CCC- 9/28/2020

Jonah Energy LLC

Missed principal U.S. Energy and natural resources 2,100.0 11/17/2020 CCC+ B+ B+ 4/24/2014

Guitar Center Inc.§

Chapter 11 U.S. Consumer/service sector 946.0 11/18/2020 - - CCC- 5/28/2020

Summit Midstream Partners Holdings LLC

Distressed exchange U.S. Utilities 300.0 11/18/2020 B- B- B- 3/1/2017

Revlon Inc.§

Distressed exchange U.S. Consumer/service sector 3,567.0 11/19/2020 - - CCC- 6/4/2020

Northern Oil and Gas Inc.

Distressed exchange U.S. Energy and natural resources 344.3 11/20/2020 B- - B- 5/29/2018

SM Energy Co.§

Distressed exchange U.S. Energy and natural resources 2,747.0 11/25/2020 - - CCC+ 6/18/2020

Haya Real Estate S.A.U

Distressed exchange Spain Consumer/service sector 595.5 11/26/2020 B- - B- 1/16/2018

Cineworld Group PLC

Distressed exchange U.K. Leisure time/media 5,721.9 11/26/2020 BB- - BB- 3/7/2018

Europcar Mobility Group

Missed interest France Leisure time/media 2,479.3 12/2/2020 BB- B+ BB- 5/4/2006

Callon Petroleum Co.

Distressed exchange U.S. Energy and natural resources 1,900.0 12/2/2020 B B B 9/13/2016

Zellis Holdings Ltd.

Distressed exchange U.K. High tech/computers/office equipment 347.0 12/2/2020 B- - B 2/9/2018

Superior Energy Services Inc.

Chapter 11 U.S. Energy and natural resources 1,300.0 12/7/2020 B- BB- BB- 9/7/1999

Community Health Systems Inc.

Distressed exchange U.S. Health care/chemicals 17,194.4 12/9/2020 CCC+ - CCC+ 11/27/2019

Populus Financial Group Inc.

Distressed exchange U.S. Financial institutions 350.0 12/18/2020 B B- B+ 9/11/2006

Sungard AS New Holdings LLC

Distressed exchange U.S. High tech/computers/office equipment 400.0 12/22/2020 B- - B- 5/7/2019
Total* 345,963.3
*This total does not match table 1 because it excludes confidentially rated defaults. §Initial ratings for these companies are those immediately following a prior default in 2020. Initial ratings, or those as of Dec. 31, 1980. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 9

One-Year Global Corporate Default Rates By Rating Modifier (%)
AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC/C
1981 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.28 0.00 0.00
1982 0.00 0.00 0.00 0.00 0.00 0.34 0.00 0.00 0.70 0.00 0.00 2.86 7.04 2.22 2.33 8.33 21.43
1983 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.37 2.17 0.00 1.59 1.25 10.00 5.26 6.67
1984 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.45 0.00 0.00 1.64 1.49 2.17 3.57 8.33 25.00
1985 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.67 1.49 1.37 2.63 13.11 8.33 15.38
1986 0.00 0.00 0.00 0.00 0.00 0.00 0.78 0.00 0.79 0.00 1.82 1.19 1.16 4.73 12.16 17.07 23.08
1987 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.84 1.33 5.95 6.98 12.28
1988 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.34 2.02 4.50 10.00 20.37
1989 0.00 0.00 0.00 0.00 0.00 0.00 0.58 0.90 0.80 0.00 0.00 0.00 2.04 0.43 7.80 5.00 33.33
1990 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.76 0.00 1.10 2.82 3.06 4.50 4.89 12.26 22.58 31.25
1991 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.83 0.75 0.00 3.77 1.12 1.05 8.72 16.25 32.43 33.87
1992 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.72 14.93 20.83 30.19
1993 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.96 0.00 1.30 5.88 4.17 13.33
1994 0.00 0.00 0.00 0.00 0.46 0.00 0.00 0.00 0.00 0.00 0.00 0.87 0.00 1.84 6.67 3.13 16.67
1995 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.65 0.00 1.57 1.12 2.77 8.08 7.50 28.00
1996 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.66 0.56 2.37 3.74 3.85 8.00
1997 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.37 0.35 0.00 0.00 0.00 0.41 0.72 5.34 14.58 12.00
1998 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.27 1.06 0.67 1.06 0.73 2.61 7.56 9.46 42.86
1999 0.00 0.00 0.00 0.36 0.00 0.25 0.28 0.00 0.28 0.31 0.55 1.34 0.91 4.24 10.45 15.60 33.82
2000 0.00 0.00 0.00 0.00 0.00 0.24 0.58 0.00 0.26 0.89 0.00 0.82 2.08 5.83 10.08 11.61 35.96
2001 0.00 0.00 0.00 0.00 0.57 0.25 0.00 0.24 0.49 0.28 0.52 1.22 5.65 5.84 17.32 22.63 45.45
2002 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.10 0.88 1.08 1.59 1.79 4.84 3.27 10.23 19.85 44.44
2003 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.54 0.51 0.98 0.28 1.73 5.34 9.52 32.93
2004 0.00 0.00 0.00 0.00 0.00 0.24 0.00 0.00 0.00 0.00 0.00 0.67 0.53 0.46 2.36 2.84 16.30
2005 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.17 0.00 0.38 0.00 0.51 0.79 2.66 2.96 9.09
2006 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.39 0.00 0.50 0.55 0.82 1.57 13.33
2007 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.32 0.24 0.19 0.00 0.90 15.24
2008 0.00 0.00 0.44 0.41 0.32 0.21 0.60 0.19 0.61 0.72 1.23 0.66 0.68 3.16 3.48 7.63 27.27
2009 0.00 0.00 0.00 0.00 0.30 0.40 0.00 0.42 0.19 1.13 0.00 1.05 0.98 6.02 10.91 18.25 49.46
2010 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.85 0.37 0.57 0.00 0.75 2.16 22.83
2011 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.00 0.00 0.00 0.42 1.29 4.55 16.42
2012 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.79 0.61 1.45 3.56 27.52
2013 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.26 0.77 0.83 4.72 24.67
2014 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.19 0.33 2.78 17.51
2015 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.26 0.22 1.77 2.04 4.31 26.67
2016 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.15 0.00 0.23 0.00 1.10 0.93 2.33 10.76 33.17
2017 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.22 0.00 0.42 0.44 2.89 26.56
2018 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.95 2.09 27.18
2019 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.38 0.00 0.00 0.00 1.18 0.68 3.31 29.76
2020 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.55 0.00 1.98 1.86 2.11 6.85 47.48
Average 0.00 0.00 0.01 0.02 0.04 0.05 0.07 0.12 0.21 0.24 0.49 0.68 1.21 2.07 5.76 8.73 24.92
Median 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.34 0.71 1.53 4.12 6.92 25.78
Standard deviation 0.00 0.00 0.07 0.09 0.13 0.11 0.20 0.28 0.34 0.41 0.88 0.81 1.62 2.01 4.88 7.35 11.79
Minimum 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Maximum 0.00 0.00 0.44 0.41 0.57 0.40 0.78 1.10 1.45 1.37 3.77 3.06 7.04 8.72 17.32 32.43 49.46
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Quarterly Trends

On a year-over-year basis, the number of rated defaults globally was higher in every quarter of 2020 relative to 2019 (see chart 14). Affected debt amounts also rose (see chart 15). Throughout most of the year, the U.S. accounted for the majority of the debt (see chart 14). The largest defaulter in 2020 was U.S.-based telecommunications provider Frontier Communications Corp., with $22.5 billion outstanding at the time of its default. This was the second-largest default since 2014, when Texas Competitive Electric Holdings Co. LLC defaulted with $28.7 billion in associated debt (see table 5).

Chart 14

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Chart 15

image

The trailing-12-month and annual default rates have become standard measures, but default rates measured over shorter time frames give a more immediate picture of credit market conditions. Based on quarterly intervals of measurement (nonannualized), default rates in second-quarter 2020 reached their highest point since the second quarter of 2009 (see chart 16). But despite the noticeable increase in defaults in 2020, peak default rates were much lower than during the financial crisis.

As 2020 wore on, default rates fell across most regions, with fourth-quarter figures generally less than half the rates in the second quarter. The notable exception was Europe, which continued to see historically elevated defaults through the third and fourth quarters.

Chart 16

image

Lower Ratings Are Much More Vulnerable To Default

On average, there is a negative correlation between the initial rating on an entity and its time to default, if a default occurs. For example, for the entire pool of defaulters in this study (1981-2020), the average times to default for issuers originally rated in the 'A' and 'B' categories were 14.1 years and 5.1 years, respectively, from the initial rating (or from Dec. 31, 1980, the start date of the study), whereas issuers in the 'CCC' rating category or lower had an average time to default of only 2.2 years.

In cases where an issuer emerges from a prior default (including distressed exchanges), we consider it a separate entity, and the original rating is the first after the default event. Table 10 displays the median, average, and standard deviations for the time to default from the original rating. The differences between each rating category's minimum and maximum times to default are in the last column, under "range." Table 11 presents the average and median times to default from each rating category for all subsequent ratings.

In both cases, the standard deviation of the times to default generally shrinks progressively as the rating gets lower. Broadly speaking, the average and median times to default for each rating category are longer when based on the initial rating than when based on subsequent ratings, particularly for speculative-grade ratings.

Table 10

Time To Default From Original Rating For Global Corporate Defaulters (1981-2020)
Original rating Defaults Average years from original rating* Median years from original rating Standard deviation of years from original rating Range
AAA 8 18.0 18.5 11.4 23.0
AA 32 17.4 19.6 10.6 37.8
A 101 14.1 10.9 9.1 37.7
BBB 221 9.2 7.3 6.7 36.1
BB 650 7.1 5.4 5.9 37.8
B 1,735 5.1 3.7 4.3 33.1
CCC/C 351 2.2 1.3 2.7 17.4
Total 3,098 5.9 4.1 5.7 39.4
*Or Dec. 31, 1980, whichever is later. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 11

Time To Default From Post-Original Ratings For Global Corporate Defaulters (1981-2020)
Rating Average years from rating category Median years from rating category Standard deviation of years from rating category
AAA 27.4 27.7 10.0
AA 14.9 15.8 9.4
A 11.5 9.9 8.3
BBB 8.3 6.5 6.9
BB 6.1 4.2 5.8
B 3.3 1.9 3.9
CCC/C 0.9 0.3 1.7
NR 5.2 3.0 5.7
Total 3.4 1.3 5.0
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

In line with expectations, the majority of companies that defaulted within one year of the original rating are from the lowest speculative-grade rating categories, 'B' and lower. For example, of the 251 companies that defaulted within 12 months of having been rated, 233 (or 92.8%) were originally in the 'B' or 'CCC'/'C' categories (see table 12).

Only in longer time frames do companies with higher original ratings surface among the defaulters. For example, of all the companies that defaulted during 1981-2020, only two entities rated 'AAA' at inception defaulted within seven years. Throughout the 40-year span, only eight companies initially rated 'AAA' have ever defaulted. These were Macy's Inc., Ally Financial Inc., Ambac Assurance Corp., Mutual Benefit Life Insurance Co., Executive Life Insurance Co. CA, Confederation Life Insurance Co., Motors Liquidation Co. (formerly known as General Motors Corp.), and Eastman Kodak Co.

Table 12

Cumulative Defaulters By Time Horizon Among Global Corporates, From Original Rating (1981-2020)*
AAA AA A BBB BB B CCC/C Total
No. of issuers defaulting within:
One year 0 0 0 3 15 88 145 251
Three years 0 1 6 29 148 646 275 1,105
Five years 0 3 13 71 303 1,116 314 1,820
Seven tears 2 6 28 105 411 1,389 331 2,272
Total 8 32 101 221 650 1,735 351 3,098
Percent of total defaults per time frame
One year 0.0 0.0 0.0 1.2 6.0 35.1 57.8
Three years 0.0 0.1 0.5 2.6 13.4 58.5 24.9
Five years 0.0 0.2 0.7 3.9 16.6 61.3 17.3
Seven tears 0.1 0.3 1.2 4.6 18.1 61.1 14.6
Total 0.3 1.0 3.3 7.1 21.0 56.0 11.3
*Or Dec. 31, 1980, whichever is later. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 13 shows the cumulative defaults over various time horizons from all ratings received subsequent to initial ratings. Each issuer is likely to be captured multiple times, in line with its migration from one rating to another, so the total count in table 13 is different from that in table 12. For example, 10 companies rated 'A' at any point in their lifetimes (excluding initial ratings) defaulted within one year of receiving this rating.

In table 13, the times to default are from the date that each entity received each unique rating in its path to default. In contrast, table 21 reports transition-to-default rates using the static pool methodology, which calculates movements to default from the beginning of each static pool year. This usually leads to shorter time frames from which to calculate default statistics. Data provided in table 13 also differ from default rates in table 24 owing to the use of the static pool methodology. (For more information on methodologies and definitions, see Appendix I.)

Table 13

Cumulative Defaulters By Time Horizon Among Global Corporates, From Post-Original Ratings (1981-2020)
AAA AA A BBB BB B CCC/C NR Total
No. of issuers defaulting within:
One year 0 0 10 71 182 1,097 2,863 148 4,371
Three years 0 7 42 148 461 2,184 3,465 339 6,646
Five years 0 9 63 209 647 2,699 3,601 439 7,667
Seven years 0 15 78 270 783 2,954 3,653 511 8,264
Total 4 51 221 518 1,165 3,390 3,709 681 9,739
Percent of total defaults per time frame
One year 0.0 0.0 0.2 1.6 4.2 25.1 65.5 3.4
Three years 0.0 0.1 0.6 2.2 6.9 32.9 52.1 5.1
Five years 0.0 0.1 0.8 2.7 8.4 35.2 47.0 5.7
Seven years 0.0 0.2 0.9 3.3 9.5 35.7 44.2 6.2
Total 0.0 0.5 2.3 5.3 12.0 34.8 38.1 7.0
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Defaults arise disproportionately from low rating categories, and this holds true over longer time horizons (see table 14). For example, 427 defaults were recorded in the five-year pool that began in January 2016, of which 414 were rated speculative grade on Jan. 1, 2016. (See table 15 for the 13 publicly rated investment-grade defaults during this period.) Lower-rated companies also exhibit lower survival rates over time.

The nonfinancial sector tends to have a much higher share of companies rated speculative grade, with 60.6% globally as of the beginning of 2020, compared with just 24.7% of financial services companies. However, the speculative-grade share of both the financial and nonfinancial sectors has been growing in recent years. Through Dec. 31, 2020, 198 defaults have come from the 2020 pool of financial and nonfinancial companies, and 94% of these were from the lowest rating categories--'B' and lower. Most were nonfinancial companies, and five were financial services issuers.

Table 14

Defaults And Survivor Rates In Latest One-, Three-, And Five-Year Pools
--Latest one-year-- --Latest three-year-- --Latest five-year--
Rating # of ratings as of 1/1/2020 # of defaults through December 2020 # of defaults through December 2020 # of ratings as of 1/1/2018 # of defaults through December 2020 Non-default rate (%) # of ratings as of 1/1/2016 # of defaults through December 2020 Non-default rate (%)
Global
AAA 8 0 100.0 9 0 100.0 17 0 100.0
AA 322 0 100.0 329 0 100.0 356 0 100.0
A 1,432 0 100.0 1,384 2 99.9 1,358 0 100.0
BBB 1,855 0 100.0 1,813 2 99.9 1,796 13 99.3
BB 1,289 12 99.1 1,320 17 98.7 1,286 28 97.8
B 2,078 73 96.5 1,916 175 90.9 1,890 283 85.0
CCC/C 238 113 52.5 195 103 47.2 199 103 48.2
Nonfinancials
AAA 5 0 100.0 6 0 100.0 12 0 100.0
AA 90 0 100.0 94 0 100.0 105 0 100.0
A 622 0 100.0 589 2 99.7 565 0 100.0
BBB 1,279 0 100.0 1,253 2 99.8 1,223 12 99.0
BB 1,010 12 98.8 1,037 17 98.4 992 27 97.3
B 1,828 70 96.2 1,672 160 90.4 1,651 256 84.5
CCC/C 235 111 52.8 179 98 45.3 178 95 46.6
Financials
AAA 3 0 100.0 3 0 100.0 5 0 100.0
AA 232 0 100.0 235 0 100.0 251 0 100.0
A 810 0 100.0 795 0 100.0 793 0 100.0
BBB 576 0 100.0 560 0 100.0 573 1 99.8
BB 279 0 100.0 283 0 100.0 294 1 99.7
B 250 3 98.8 244 15 93.9 239 27 88.7
CCC/C 3 2 33.3 16 5 68.8 21 8 61.9
Note: The totals included may differ from the counts in table 1 because defaults that are not rated at the beginning of the pool year are excluded. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 15

Investment-Grade Defaults In The Five-Year 2016 Static Pool
Company name Country Industry Default date Rating one year prior to default Rating three years prior to default First rating Date of first rating Year of default
CBL & Associates Properties Inc. U.S. Real estate 11/2/2020 B+ BBB- BBB- 9/15/2015 2020
Diamond Offshore Drilling Inc. U.S. Energy and natural resources 4/24/2020 B BB- A- 1/29/1997 2020
Distribuidora Internacional de Alimentacion S.A. Spain Consumer/service sector 9/15/2020 CCC BBB- BBB- 6/2/2014 2020
FirstEnergy Solutions Corp. U.S. Energy and natural resources 4/2/2018 CCC+ BBB- BBB 3/26/2007 2018
Istmo Compania de Reaseguros Inc. Panama Insurance 12/16/2016 BBB BBB BBB- 1/31/2007 2016
Nabors Industries Ltd. Bermuda Energy and natural resources 10/30/2020 BB- BB BBB 4/11/2013 2020
Noble Group Ltd. Bermuda Energy and natural resources 3/20/2018 B+ BBB- BB+ 3/2/2005 2018
Odebrecht Engenharia e Construcao S.A. Brazil Aerospace/automotive/capital goods/metal 11/26/2018 CCC+ BBB- BB- 3/26/2002 2018
PG&E Corp. U.S. Utility 1/29/2019 A- BBB BBB+ 3/10/2009 2019
Pacific Gas & Electric Co. U.S. Utility 1/16/2019 A- BBB BBB- 4/16/2004 2019
Superior Energy Services Inc. U.S. Energy and natural resources 12/7/2020 B- BB- BB- 9/7/1999 2020
Tupperware Brands Corp. U.S. Consumer/service sector 7/10/2020 BBB- BBB- BBB+ 6/19/1996 2020
Valaris plc U.K. Energy and natural resources 6/3/2020 B- BB BBB+ 1/7/2010 2020
Note: Excludes confidentially rated defaults. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Since 1981, the 'B' rating category has accounted for 1,735 defaults (56% of the total from initial rating), well more than double the number of defaulters from the 'BB' category (see tables 10 and 12). Given this track record, monitoring the trends of newly assigned ratings could prove useful in anticipating future default activity, based on the observation that years with high numbers of new 'B-' and lower ratings will likely be followed by increased default risk.

As coincident indicators, the proportion of new speculative-grade ratings at 'B-' or lower in the U.S. and the year-end U.S. speculative-grade default rate generally mirror each other throughout most of their shared history (see chart 17). However, in most of the relatively benign period since the financial crisis, the two series have diverged somewhat, as they did in 2004-2007. In 2020, the share of new speculative-grade issuers rated 'B-' and lower reached 56.8%. This is an extremely high level, just surpassing 2009, when the ratio hit 56.3% amid a wave of distressed exchanges, which, once completed, often result in 'B-' ratings.

Chart 17

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Industry Variations: Energy And Consumer Services Lead Again, But Defaults Were Widespread In 2020

Defaults reached a multiyear high in 2020, but this was largely limited to nonfinancial corporates. Financial services had some defaults, but at a lower rate than in 2019 (see table 16).

In nearly all instances, the financial services sector's longer-term default rates were lower in 2020 than long-term averages. This is not surprising at the three- and 10-year horizons, considering the relative stress of the financial crisis has now passed beyond the 10-year time frame. Investment-grade ratings are proportionately more prevalent among financial services companies as well (relative to nonfinancials).

Table 16

Cumulative Global Corporate Default Rates By Sector (%)
Sector 2020 2019 Average (1981-2020) Median Standard deviation Minimum Maximum
Financial institutions
One-year 0.30 0.60 0.65 0.34 0.70 0.00 2.76
Three-year 1.38 1.37 1.88 1.37 1.55 0.00 6.44
10-year 3.11 2.93 4.70 4.11 2.48 1.66 9.96
Insurance
One-year 0.12 0.12 0.49 0.19 0.90 0.00 4.76
Three-year 0.24 0.23 1.49 0.94 1.65 0.12 7.14
10-year 0.61 0.86 4.71 4.23 3.20 0.61 14.71
All financials
One-year 0.23 0.42 0.57 0.42 0.53 0.00 2.06
Three-year 0.94 0.92 1.70 1.29 1.16 0.18 4.94
10-year 2.05 2.06 4.68 3.94 2.31 2.05 8.80
All nonfinancials
One-year 3.81 1.67 1.87 1.51 1.32 0.16 5.75
Three-year 5.78 4.00 5.13 4.05 2.81 1.89 12.55
10-year 8.91 8.03 11.37 10.60 3.17 7.03 19.51
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Over the long term, defaults in nonfinancial sectors have tended to be more cyclical than defaults in the financial sectors. While the one-year default rate for nonfinancial companies has climbed above 3.5% in four cyclical peaks (1991, 2001-2002, 2009, and 2020), the annual default rate for financial services has remained below 2% since 1990 and below 1% for the past 11 years (see chart 18).

The higher default rates for nonfinancial sectors are not surprising, given their higher concentration of speculative-grade issuers. Financial services companies are more likely to be initially rated in the investment-grade category, while nonfinancial companies are much more likely to initially be rated speculative grade. Over the 40 years this study covers, 70.5% of financial entities were initially rated investment grade, compared with only 29.4% of nonfinancial companies. This helps explain the resemblance between the annual default rates of nonfinancial entities and those of the speculative-grade segment as a whole, which certainly contributes to the vast differences between cumulative default rates across financial and nonfinancial sectors (see table 16).

For example, at the end of 2020, the one-year default rate among all financial entities was 0.23%, compared with 3.8% for all nonfinancial entities. The gap becomes even wider over longer time horizons, such as three years and 10 years (see chart 19).

Chart 18

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Chart 19

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A total of 3,098 defaults have been recorded globally since 1981. Over that period, seven sectors have displayed average times to default that are lower than the overall average of 5.9 years: energy and natural resources; financial institutions; health care/chemicals; high technology, computers, and office equipment; leisure time and media; real estate; and telecommunications (see table 17).

Across sectors, the average difference between an industry's median initial rating and the median initial rating of its defaulters was about 1.5 notches. The largest gap between the two was in financial institutions, which had a five-notch difference: The 233 financial institutions that defaulted had a median original rating of 'B+', compared with a sector median of 'BBB'.

Table 17

Time To Default From Original Rating* Grouped By Industry (%)
Median original rating (defaulters) Median original rating (industry) Defaults Average years from original rating* Median years from original rating Standard deviation of years from original rating Range (years)
Aerospace/automotive/capital goods/metal B+ BB- 407 6.4 4.5 5.8 36.1
Consumer/service sector B+ B+ 600 6.8 4.8 6.5 39.3
Energy and natural resources B B+ 425 4.7 3.4 4.7 35.4
Financial institutions B+ BBB 233 5.7 3.7 5.9 28.6
Forest and building products/homebuilders B+ B+ 170 6.6 4.7 5.5 28.2
Health care/chemicals B+ B+ 175 5.9 3.9 5.8 33.7
High tech/computers/office equipment B+ B+ 103 5.4 3.9 4.7 28.3
Insurance BBB A- 77 7.8 6.6 6.3 28.6
Leisure time/media B B+ 409 5.9 4.0 5.5 34.1
Real estate B+ BBB- 56 4.1 3.0 3.6 21.0
Telecommunications B B+ 191 4.0 3.1 4.0 39.1
Transportation B+ BB 163 6.4 4.0 6.6 36.3
Utility BB+ BBB+ 89 6.6 4.3 6.6 30.4
Total B+ BB- 3,098 5.9 4.1 5.7 39.4
*Or Dec. 31, 1980, whichever is later. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 18

Time To Default From Post-Original Ratings, Grouped By Industry (%)
Average years to default Median years to default Standard deviation of years to default
Aerospace/automotive/capital goods/metal 3.7 1.5 5.2
Consumer/service sector 4.0 1.8 5.6
Energy and natural resources 2.6 1.0 4.1
Financial institutions 3.2 1.1 4.9
Forest and building products/homebuilders 2.9 1.3 4.1
Health care/chemicals 3.2 1.3 4.9
High technology/computers/office equipment 3.9 1.8 5.1
Insurance 3.1 1.7 3.7
Leisure time/media 3.2 1.2 4.6
Real estate 2.2 0.9 3.8
Telecommunications 2.0 0.7 3.9
Transportation 4.6 1.7 6.3
Utility 3.2 0.8 5.2
Total 3.4 1.3 5.0
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Defaults in 2020 came from all sectors, but--consistent with recent years--were heavily represented by two sectors: the energy and natural resources sector (with 62 defaults) and the consumer services sector (with 60 defaults). These two sectors, along with leisure time/media, had 2020 default rates in excess of 6%, which were much higher than other sectors and were markedly higher than their sectoral long-term weighted averages (see table 19).

Table 19

Global Corporate Default Rates By Industry (%)
2020 2019 Weighted average (1981-2020) Median Standard deviation Minimum Maximum
Aerospace/automotive/capital goods/metal 1.56 1.53 2.05 1.39 1.96 0.00 9.61
Consumer/service sector 6.49 2.63 2.46 1.83 1.67 0.00 6.49
Energy and natural resources 9.45 3.83 3.41 1.80 3.04 0.00 13.88
Financial institutions 0.30 0.60 0.64 0.34 0.70 0.00 2.76
Forest and building products/homebuilders 1.18 1.15 2.43 1.45 2.91 0.00 14.87
Health care/chemicals 2.36 1.61 1.43 0.89 1.28 0.00 4.65
High technology/computers/office equipment 2.02 1.43 1.24 1.01 1.48 0.00 5.00
Insurance 0.12 0.12 0.29 0.19 0.90 0.00 4.76
Leisure time/media 6.25 1.41 3.34 2.11 3.22 0.00 17.02
Real estate 2.27 0.00 0.77 0.00 2.66 0.00 12.00
Telecommunications 2.88 2.80 2.51 0.92 3.66 0.00 18.10
Transportation 3.65 0.68 2.00 1.78 1.61 0.00 6.12
Utility 0.49 0.32 0.44 0.17 0.76 0.00 4.46
Includes investment-grade and speculative-grade entities. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

When comparing default rates across sectors, we note some key differences between the industries. Several sectors have had distinct default cycles, such as the high technology, computers, and office equipment sector and the telecommunications sector, which both fueled the prolonged spike in defaults during the tech bubble, when the global speculative-grade default rate reached 12.2% in June 2002. Other sectors, such as consumer services, have had more frequent default cycles, both during and between economic cycles.

However, some of the variation in default rates between sectors stems from overall sample size differences, as well as differences in the ratings distribution across industries. For example, leisure and media has a much higher proportion of speculative-grade ratings than financial institutions or insurance (see chart 20).

For the most part, the speculative-grade share of every sector has grown over the past decade, with the exception of the real estate sector. Speculative-grade-rated issuers account for more than 60% of total issuers in eight of the 13 industries we track. As has been the case for an extended period, the leisure time and media sector has by far the highest proportion of speculative-grade ratings, with 83.3% of its issuers in this rating category in 2020. Four other sectors' speculative-grade proportions are greater than 70%, and telecommunications reached nearly 68% at the end of 2020.

Chart 20

image

Speculative-Grade Ratings Represent About Half Of Corporate Issuers

Despite a rising default rate in 2020 (see chart 21), risk tolerance among lenders has remained near the post-financial crisis high. The share of newly assigned issuer credit ratings that are speculative grade has remained elevated in 2020: 78% of newly assigned issuer credit ratings globally were speculative grade. This is roughly in line with the annual average since 2010, which is 76.7%.

Chart 21

image

Globally, speculative-grade issuers constituted 50.3% of rated corporate issuers at the end of 2020, whereas at the end of 2019, speculative-grade ratings represented 49.9% of global ratings (see chart 22). A majority of issuers have been rated speculative grade before--the first instance in July 2018--but the ratio has largely hovered around 50% since. The 50.3% at the end of 2020 does represent an all-time high, albeit by a margin of only 0.1%.

In 2010-2020, about 77% of the initial ratings that S&P Global Ratings assigned to new issuers were speculative grade. This figure includes new ratings subsequent to a prior default--such as after distressed exchanges. However, even when we limit the pool of new issuers to those that have never been rated before, speculative-grade issuers still account for 75% of the total. This influx of new speculative-grade issuers has contributed to the growing share of speculative-grade ratings globally, with the U.S. and European regions accounting for roughly two-thirds of the total since 2010.

Chart 22

image

Historically, a growing concentration of speculative-grade ratings often precedes a period of increased defaults. For example, the share of speculative-grade ratings increased in the U.S. beginning in 2002. After speculative-grade ratings reached a peak of 51% of U.S. corporate ratings in 2007, the default rate hit its cyclical peak of 12% in 2009, following the Great Recession (see chart 23). As is the case globally, the proportion of speculative-grade ratings reached an all-time high in the U.S. as well, at 57.8%.

Chart 23

image

In Europe, by contrast, the share of speculative-grade ratings remains in the minority. In large part, this reflects the private nature of the leveraged finance market before the financial crisis in 2008. In 2005, the speculative-grade share of European corporate ratings peaked near 21%, and once the cycle turned, the European speculative-grade default rate peaked at 9.9% in November 2009.

However, since 2008, speculative-grade ratings in Europe have surged, with the share more than doubling to 44.5% at the end of 2020. This growth of the publicly rated speculative-grade market in Europe has resulted largely from newly assigned speculative-grade ratings (in addition to downgrades). Before 2010, the majority of newly assigned European issuer credit ratings were investment grade, but since then, roughly 73.6% of newly assigned ratings have been speculative grade annually. With the region moving to promote disintermediation, this share of speculative-grade issuers could continue to grow.

Chart 24

image

Transition And Cumulative Default Rates Demonstrate Ratings Performance

An analysis of transition rates for 2020 suggests that ratings behavior continues to exhibit consistency with long-term trends. Higher ratings show a negative correspondence with the observed frequency of default. Investment-grade-rated issuers globally tend to exhibit greater ratings stability (as measured by the frequency of rating transitions) than those rated speculative grade (see table 20). For instance, 92.9% of issuers rated 'A' at the beginning of 2020 were still rated 'A' by Dec. 31, 2020, whereas the comparable share for issuers rated 'B' was only 72%.

The number of 'AAA' rated issuers globally declined to just eight by the end of 2020 from 89 at the beginning of 2008. Over this same period, as the number of the highest-rated investment-grade companies dwindled, the count of the lowest-rated investment-grade companies surged. The number of companies rated in the 'BBB' category has grown by 27% since the beginning of 2008, to roughly 1,847 at the end of 2020.

Because of the extremely small size of the 'AAA' rating category, the downgrade of even one issuer will have a large effect on this segment's stability rate. Many events over the long term have contributed to the decline of global 'AAA' rated issuers. The sovereign downgrades of China in 2017, the U.K. in 2016, France in 2012, and the U.S. in 2011 have factored into the downgrades of many higher-rated financial services companies.

Conversely, among nonfinancial entities, willingness to operate with higher leverage to fund share buybacks, expand businesses, or finance acquisitions has gradually increased. These factors, combined with asset managers' growing tolerance for investing in lower-rated companies, leave just a handful of the highest-rated entities.

Over the long term (1981-2020), heightened ratings stability is broadly consistent with higher ratings (see table 21). A key consideration when analyzing transition matrices that present averages computed over multiple static pools is that the standard deviations associated with each transition point in the matrix are large relative to the averages (outside of stability rates).

Table 20

2020 One-Year Corporate Transition Rates By Region (%)
From/to AAA AA A BBB BB B CCC/C D NR
Global
AAA 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AA 0.00 87.27 9.63 0.00 0.00 0.00 0.00 0.00 3.11
A 0.00 0.00 92.88 4.05 0.00 0.07 0.00 0.00 3.00
BBB 0.00 0.05 0.59 90.13 4.47 0.22 0.00 0.00 4.53
BB 0.00 0.00 0.00 0.78 78.20 11.40 0.85 0.93 7.84
B 0.00 0.00 0.00 0.05 0.96 71.99 12.56 3.51 10.92
CCC/C 0.00 0.00 0.00 0.00 0.00 5.46 34.45 47.48 12.61
U.S.
AAA 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AA 0.00 90.30 8.96 0.00 0.00 0.00 0.00 0.00 0.75
A 0.00 0.00 93.86 3.79 0.00 0.00 0.00 0.00 2.35
BBB 0.00 0.14 0.98 90.17 4.49 0.56 0.00 0.00 3.65
BB 0.00 0.00 0.00 0.90 76.13 15.55 0.72 1.27 5.42
B 0.00 0.00 0.00 0.09 1.20 73.05 12.36 3.61 9.70
CCC/C 0.00 0.00 0.00 0.00 0.00 4.58 35.95 49.02 10.46
Europe
AAA 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AA 0.00 85.71 10.20 0.00 0.00 0.00 0.00 0.00 4.08
A 0.00 0.00 93.13 3.56 0.00 0.00 0.00 0.00 3.31
BBB 0.00 0.00 0.46 89.47 5.49 0.00 0.00 0.00 4.58
BB 0.00 0.00 0.00 0.96 75.60 9.09 1.44 0.96 11.96
B 0.00 0.00 0.00 0.00 0.87 74.78 12.17 3.04 9.13
CCC/C 0.00 0.00 0.00 0.00 0.00 8.16 32.65 44.90 14.29
Emerging markets
AAA 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AA 0.00 93.18 0.00 0.00 0.00 0.00 0.00 0.00 6.82
A 0.00 0.00 91.94 5.49 0.00 0.37 0.00 0.00 2.20
BBB 0.00 0.00 0.19 89.60 4.91 0.00 0.00 0.00 5.29
BB 0.00 0.00 0.00 0.42 81.10 7.64 0.64 0.64 9.55
B 0.00 0.00 0.00 0.00 0.54 68.12 11.99 3.54 15.80
CCC/C 0.00 0.00 0.00 0.00 0.00 4.00 28.00 44.00 24.00
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

This study--in line with previous default studies--confirms that over the long term (1981-2020), higher ratings are more stable than lower ratings. Issuers rated 'AAA' were still rated 'AAA' one year later 87.1% of the time, while issuers rated in the 'CCC'/'C' category retained those ratings just 43.1% of the time. This relationship between higher ratings and higher ratings stability holds even over longer time horizons (see table 21) and when broken out by region (see table 22).

In contrast, the relationship is slightly more discontinuous when we examine rating transitions across modifiers (the plus or minus after a rating), but these variations are likely a result of sample size considerations, and we do not consider them significant (see table 23). For example, 'AA+' rated issuers were still rated 'AA+' one year later 79.3% of the time, and 'AA' rated issuers were still rated 'AA' one year later 80.9% of the time. In this case, however, the 'AA+' figure was derived from a much smaller sample than that for the 'AA' rating. And as a general rule, the highest proportions of rating changes for any given rating or rating modifier occur at adjacent ratings and rating modifiers.

Table 21

Global Corporate Average Transition Rates (1981-2020) (%)
From/to AAA AA A BBB BB B CCC/C D NR
One-year
AAA 87.06 9.06 0.53 0.05 0.11 0.03 0.05 0.00 3.11
(7.18) (7.22) (0.82) (0.24) (0.28) (0.17) (0.34) (0.00) (2.43)
AA 0.48 87.23 7.77 0.47 0.05 0.06 0.02 0.02 3.89
(0.53) (5.17) (4.14) (0.68) (0.19) (0.20) (0.06) (0.07) (1.81)
A 0.03 1.60 88.58 5.00 0.26 0.11 0.02 0.05 4.35
(0.09) (1.05) (3.74) (2.15) (0.38) (0.24) (0.06) (0.10) (1.68)
BBB 0.00 0.09 3.25 86.49 3.56 0.43 0.10 0.16 5.92
(0.03) (0.15) (1.62) (3.90) (1.57) (0.65) (0.21) (0.24) (1.54)
BB 0.01 0.03 0.11 4.55 77.82 6.80 0.55 0.63 9.51
(0.05) (0.08) (0.24) (2.01) (4.38) (3.09) (0.70) (0.81) (2.17)
B 0.00 0.02 0.07 0.15 4.54 74.60 4.96 3.34 12.33
(0.00) (0.08) (0.19) (0.21) (2.21) (3.97) (2.74) (3.04) (2.16)
CCC/C 0.00 0.00 0.10 0.17 0.55 12.47 43.11 28.30 15.31
(0.00) (0.00) (0.40) (0.62) (0.88) (7.45) (8.48) (11.27) (4.97)
Three-year
AAA 65.47 22.20 2.33 0.32 0.26 0.08 0.11 0.13 9.10
(11.52) (12.26) (1.74) (0.76) (0.53) (0.29) (0.41) (0.37) (5.25)
AA 1.13 67.07 18.13 1.95 0.33 0.21 0.03 0.12 11.04
(0.85) (9.58) (6.16) (1.42) (0.50) (0.44) (0.07) (0.18) (4.01)
A 0.05 3.78 70.27 11.24 1.14 0.39 0.08 0.23 12.81
(0.09) (2.15) (7.01) (2.93) (1.01) (0.58) (0.13) (0.27) (3.41)
BBB 0.02 0.25 8.07 66.24 6.80 1.47 0.26 0.77 16.13
(0.06) (0.38) (2.87) (7.33) (2.00) (1.27) (0.35) (0.91) (3.26)
BB 0.01 0.05 0.44 10.63 48.60 11.27 1.18 3.48 24.33
(0.05) (0.12) (0.67) (3.31) (7.40) (2.65) (0.87) (3.41) (3.63)
B 0.00 0.02 0.17 0.66 9.42 42.14 5.11 11.77 30.70
(0.05) (0.10) (0.40) (0.75) (3.44) (5.21) (2.04) (6.95) (4.65)
CCC/C 0.00 0.00 0.11 0.53 1.54 16.93 9.84 41.76 29.29
(0.00) (0.00) (0.47) (1.14) (1.56) (6.67) (5.73) (11.61) (8.08)
Five-year
AAA 49.49 28.78 4.77 0.80 0.35 0.16 0.08 0.35 15.23
(11.81) (13.44) (2.73) (1.54) (0.54) (0.40) (0.27) (0.60) (6.55)
AA 1.41 52.27 24.08 3.43 0.54 0.36 0.04 0.31 17.56
(0.97) (9.51) (5.17) (1.84) (0.63) (0.58) (0.10) (0.38) (4.71)
A 0.07 4.84 57.28 14.50 1.86 0.62 0.13 0.48 20.22
(0.10) (2.36) (7.95) (2.57) (1.20) (0.82) (0.17) (0.44) (4.05)
BBB 0.02 0.39 10.28 53.18 7.56 2.01 0.35 1.64 24.57
(0.07) (0.52) (2.91) (7.72) (1.56) (1.42) (0.37) (1.43) (4.24)
BB 0.01 0.07 0.89 12.47 33.03 11.12 1.18 6.79 34.44
(0.05) (0.16) (0.95) (3.01) (7.39) (2.00) (0.89) (4.87) (4.00)
B 0.01 0.02 0.21 1.33 9.80 25.59 3.15 17.82 42.06
(0.10) (0.08) (0.51) (1.17) (2.82) (4.81) (1.11) (8.04) (5.54)
CCC/C 0.00 0.00 0.10 0.67 2.59 12.55 2.75 46.10 35.25
(0.00) (0.00) (0.45) (1.64) (2.02) (4.61) (3.47) (11.51) (8.80)
Seven-year
AAA 37.98 32.58 6.82 1.48 0.35 0.19 0.11 0.51 19.98
(11.01) (13.91) (3.01) (1.92) (0.55) (0.42) (0.31) (0.74) (6.88)
AA 1.46 41.19 27.41 4.59 0.72 0.36 0.03 0.52 23.72
(0.96) (7.65) (4.25) (1.83) (0.62) (0.50) (0.08) (0.53) (4.63)
A 0.06 5.23 47.92 16.24 2.35 0.76 0.13 0.83 26.48
(0.11) (1.87) (7.46) (1.90) (1.29) (0.87) (0.17) (0.58) (4.00)
BBB 0.03 0.50 11.16 44.49 7.31 2.20 0.35 2.51 31.45
(0.10) (0.58) (2.62) (7.29) (0.89) (1.17) (0.32) (1.78) (4.48)
BB 0.00 0.08 1.25 12.73 24.21 9.91 0.95 9.78 41.10
(0.00) (0.17) (1.04) (3.02) (6.76) (2.05) (0.67) (5.59) (3.53)
B 0.00 0.02 0.28 1.87 8.81 16.99 1.82 21.85 48.36
(0.07) (0.08) (0.55) (1.39) (2.05) (4.31) (0.63) (8.18) (5.25)
CCC/C 0.00 0.00 0.18 0.87 3.47 7.70 1.77 48.05 37.97
(0.00) (0.00) (0.55) (1.95) (1.97) (3.57) (2.37) (11.28) (9.12)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 22

Average One-Year Corporate Transition Rates (1981-2020) (%)
From/to AAA AA A BBB BB B CCC/C D NR
U.S.
AAA 87.38 8.62 0.58 0.04 0.17 0.04 0.04 0.00 3.14
(10.13) (10.28) (1.16) (0.21) (0.40) (0.27) (0.27) (0.00) (2.48)
AA 0.50 87.29 7.40 0.56 0.08 0.10 0.03 0.03 4.01
(0.52) (6.14) (4.50) (0.83) (0.22) (0.28) (0.11) (0.16) (2.41)
A 0.04 1.64 88.37 5.22 0.35 0.14 0.03 0.07 4.13
(0.12) (1.22) (4.25) (2.51) (0.49) (0.31) (0.11) (0.15) (1.86)
BBB 0.01 0.11 3.40 86.60 3.65 0.56 0.10 0.20 5.37
(0.05) (0.18) (1.88) (4.66) (1.77) (0.83) (0.16) (0.31) (1.89)
BB 0.02 0.04 0.16 4.61 77.54 7.73 0.57 0.74 8.59
(0.08) (0.11) (0.30) (2.40) (5.27) (4.02) (0.68) (0.84) (2.46)
B 0.00 0.03 0.09 0.18 4.26 75.52 5.02 3.53 11.37
(0.00) (0.09) (0.23) (0.24) (2.12) (4.39) (2.82) (3.21) (2.26)
CCC/C 0.00 0.00 0.15 0.22 0.63 11.24 43.64 30.26 13.86
(0.00) (0.00) (0.52) (0.76) (1.10) (7.48) (8.37) (11.58) (5.08)
Europe
AAA 87.10 9.13 0.46 0.11 0.00 0.00 0.11 0.00 3.08
(8.70) (7.72) (1.37) (0.91) (0.00) (0.00) (0.76) (0.00) (4.45)
AA 0.27 86.24 9.45 0.54 0.00 0.00 0.00 0.00 3.51
(0.65) (6.99) (6.30) (1.15) (0.00) (0.00) (0.00) (0.00) (2.37)
A 0.01 1.80 87.80 5.31 0.15 0.03 0.00 0.03 4.86
(0.05) (1.78) (4.79) (3.40) (0.33) (0.41) (0.00) (0.09) (1.94)
BBB 0.00 0.09 3.93 85.38 3.46 0.28 0.09 0.06 6.71
(0.00) (1.24) (1.99) (4.58) (2.61) (0.50) (0.26) (0.20) (2.95)
BB 0.00 0.00 0.10 5.10 74.39 6.86 0.39 0.36 12.81
(0.00) (0.00) (0.59) (2.59) (6.53) (3.43) (0.97) (0.81) (4.32)
B 0.00 0.00 0.02 0.22 4.85 72.84 5.34 2.22 14.50
(0.00) (0.00) (0.20) (0.50) (3.51) (6.36) (3.31) (3.25) (5.30)
CCC/C 0.00 0.00 0.00 0.25 0.00 12.35 40.25 28.64 18.52
(0.00) (0.00) (0.00) (0.68) (0.00) (10.42) (15.47) (16.06) (9.18)
Emerging markets
AAA 89.77 9.09 0.00 0.00 0.00 0.00 0.00 0.00 1.14
(21.05) (20.65) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (6.21)
AA 0.91 88.89 6.92 0.18 0.00 0.00 0.00 0.00 3.10
(4.74) (11.82) (9.26) (1.29) (0.00) (0.00) (0.00) (0.00) (4.21)
A 0.00 1.47 90.96 4.61 0.25 0.28 0.00 0.03 2.38
(0.00) (1.84) (5.64) (4.09) (0.72) (1.04) (0.00) (0.13) (2.40)
BBB 0.00 0.02 2.19 87.25 4.40 0.33 0.15 0.11 5.55
(0.00) (0.09) (2.35) (5.43) (4.01) (1.27) (0.98) (0.34) (1.86)
BB 0.00 0.00 0.00 3.92 80.49 4.94 0.61 0.54 9.50
(0.00) (0.00) (0.00) (2.50) (4.08) (2.25) (1.90) (1.10) (3.08)
B 0.00 0.00 0.00 0.02 5.48 72.35 4.10 3.06 14.99
(0.00) (0.00) (0.00) (0.11) (3.93) (5.01) (3.56) (3.33) (2.88)
CCC/C 0.00 0.00 0.00 0.00 0.43 18.03 44.06 19.17 18.31
(0.00) (0.00) (0.00) (0.00) (0.93) (13.33) (14.69) (15.52) (10.63)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 23

Average One-Year Transition Rates For Global Corporates By Rating Modifier (1981-2020) (%)
--Rating--
From/to AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC D NR
AAA 87.06 5.88 2.50 0.69 0.16 0.24 0.13 0.00 0.05 0.00 0.03 0.05 0.03 0.00 0.03 0.00 0.05 0.00 3.11
(7.18) (6.21) (3.19) (1.04) (0.45) (0.56) (0.34) (0.00) (0.24) (0.00) (0.17) (0.18) (0.14) (0.00) (0.17) (0.00) (0.34) (0.00) (2.43)
AA+ 2.26 79.28 10.77 3.45 0.69 0.32 0.18 0.05 0.09 0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.85
(3.71) (11.45) (7.20) (4.03) (2.27) (0.81) (0.47) (0.24) (0.65) (0.22) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (2.93)
AA 0.42 1.29 80.91 8.45 2.67 1.13 0.35 0.38 0.13 0.08 0.05 0.03 0.02 0.02 0.00 0.02 0.05 0.02 3.99
(0.51) (1.58) (8.93) (6.17) (2.58) (1.22) (0.58) (0.81) (0.35) (0.23) (0.16) (0.12) (0.10) (0.12) (0.00) (0.09) (0.15) (0.08) (2.57)
AA- 0.04 0.10 3.67 78.89 9.77 2.21 0.59 0.25 0.14 0.07 0.03 0.00 0.00 0.03 0.08 0.00 0.00 0.03 4.10
(0.12) (0.30) (4.24) (7.37) (4.79) (2.54) (0.81) (0.48) (0.42) (0.24) (0.19) (0.00) (0.00) (0.14) (0.37) (0.00) (0.00) (0.10) (2.05)
A+ 0.00 0.06 0.42 4.30 78.77 8.67 2.09 0.59 0.33 0.08 0.06 0.08 0.01 0.07 0.03 0.00 0.00 0.05 4.39
(0.00) (0.19) (0.68) (2.59) (6.13) (3.19) (1.49) (0.65) (0.43) (0.18) (0.16) (0.24) (0.05) (0.18) (0.13) (0.00) (0.00) (0.14) (1.84)
A 0.03 0.04 0.21 0.40 5.16 79.16 6.70 2.38 0.84 0.26 0.09 0.10 0.06 0.08 0.02 0.00 0.01 0.05 4.41
(0.12) (0.13) (0.49) (0.48) (2.15) (5.49) (2.99) (1.70) (0.91) (0.37) (0.19) (0.26) (0.28) (0.27) (0.09) (0.00) (0.05) (0.11) (2.13)
A- 0.04 0.01 0.06 0.14 0.40 6.26 78.58 7.24 1.90 0.56 0.13 0.13 0.11 0.10 0.03 0.01 0.03 0.06 4.24
(0.18) (0.04) (0.14) (0.26) (0.60) (3.19) (6.37) (3.00) (1.57) (0.60) (0.32) (0.33) (0.22) (0.28) (0.08) (0.07) (0.14) (0.17) (1.81)
BBB+ 0.00 0.01 0.05 0.06 0.19 0.72 6.85 76.09 8.22 1.56 0.34 0.28 0.12 0.14 0.09 0.02 0.06 0.09 5.10
(0.00) (0.04) (0.15) (0.17) (0.41) (0.94) (3.00) (6.28) (3.40) (1.38) (0.51) (0.55) (0.21) (0.39) (0.28) (0.09) (0.16) (0.25) (1.94)
BBB 0.01 0.01 0.05 0.03 0.10 0.29 0.96 7.45 76.18 6.30 1.34 0.64 0.27 0.21 0.10 0.03 0.05 0.15 5.82
(0.07) (0.07) (0.13) (0.12) (0.21) (0.65) (0.95) (3.27) (4.97) (2.41) (1.02) (0.67) (0.45) (0.43) (0.37) (0.09) (0.12) (0.27) (2.02)
BBB- 0.01 0.01 0.02 0.04 0.06 0.13 0.24 1.13 9.04 72.61 5.62 2.05 0.84 0.37 0.22 0.15 0.20 0.24 7.01
(0.07) (0.05) (0.06) (0.19) (0.16) (0.37) (0.51) (1.12) (3.22) (5.09) (2.69) (1.43) (0.74) (0.71) (0.45) (0.42) (0.53) (0.38) (2.07)
BB+ 0.04 0.00 0.00 0.03 0.03 0.08 0.08 0.39 1.53 10.88 65.43 7.88 2.66 1.00 0.53 0.23 0.35 0.32 8.58
(0.21) (0.00) (0.00) (0.12) (0.10) (0.36) (0.26) (0.68) (1.80) (4.54) (6.44) (4.32) (1.90) (1.53) (1.02) (0.36) (0.88) (0.59) (2.57)
BB 0.00 0.00 0.03 0.01 0.00 0.05 0.04 0.15 0.45 1.92 9.29 65.22 8.81 2.38 1.06 0.36 0.50 0.48 9.22
(0.00) (0.00) (0.19) (0.06) (0.00) (0.34) (0.20) (0.40) (0.81) (2.12) (4.00) (5.27) (3.63) (1.58) (1.25) (0.59) (0.92) (0.65) (2.94)
BB- 0.00 0.00 0.00 0.01 0.01 0.01 0.04 0.09 0.22 0.33 1.65 9.32 63.62 8.76 3.07 0.81 0.73 0.96 10.37
(0.00) (0.00) (0.00) (0.09) (0.08) (0.07) (0.26) (0.23) (0.42) (0.60) (1.60) (4.04) (5.24) (3.85) (1.50) (0.75) (0.84) (1.39) (2.44)
B+ 0.00 0.01 0.00 0.03 0.00 0.03 0.06 0.04 0.05 0.10 0.30 1.38 8.00 62.48 9.60 2.64 1.83 1.98 11.48
(0.00) (0.06) (0.00) (0.13) (0.00) (0.09) (0.19) (0.13) (0.16) (0.20) (0.35) (1.10) (3.42) (5.97) (4.14) (1.40) (1.64) (1.97) (2.60)
B 0.00 0.00 0.01 0.01 0.00 0.03 0.04 0.01 0.05 0.03 0.10 0.21 1.03 7.11 61.38 10.24 4.10 3.13 12.52
(0.00) (0.00) (0.08) (0.05) (0.00) (0.18) (0.33) (0.07) (0.27) (0.10) (0.27) (0.51) (1.16) (3.21) (6.91) (4.94) (3.08) (3.91) (2.52)
B- 0.00 0.00 0.00 0.00 0.01 0.03 0.00 0.06 0.06 0.09 0.07 0.13 0.42 1.99 9.36 54.59 13.04 6.52 13.63
(0.00) (0.00) (0.00) (0.00) (0.28) (0.26) (0.00) (0.29) (0.16) (0.40) (0.41) (0.77) (0.82) (2.19) (5.13) (6.58) (5.47) (5.71) (3.80)
CCC/C 0.00 0.00 0.00 0.00 0.02 0.00 0.07 0.05 0.07 0.05 0.02 0.15 0.37 0.92 2.42 9.12 43.11 28.30 15.31
(0.00) (0.00) (0.00) (0.00) (0.21) (0.00) (0.35) (0.43) (0.30) (0.35) (0.22) (0.48) (0.72) (1.46) (2.84) (5.31) (8.48) (11.27) (4.97)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Chart 25

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Table 24

Global Corporate Average Cumulative Default Rates (1981-2020) (%)
--Time horizon (years)--
Rating 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
AAA 0.00 0.03 0.13 0.24 0.34 0.45 0.51 0.59 0.64 0.70 0.72 0.75 0.78 0.84 0.90
AA 0.02 0.06 0.11 0.21 0.30 0.41 0.49 0.56 0.63 0.70 0.76 0.82 0.88 0.93 0.99
A 0.05 0.13 0.22 0.33 0.46 0.60 0.76 0.90 1.05 1.20 1.34 1.46 1.59 1.71 1.84
BBB 0.16 0.43 0.75 1.14 1.54 1.94 2.27 2.61 2.93 3.24 3.55 3.80 4.03 4.28 4.54
BB 0.63 1.93 3.46 4.99 6.43 7.75 8.89 9.90 10.82 11.64 12.33 12.99 13.59 14.09 14.65
B 3.34 7.80 11.75 14.89 17.35 19.36 20.99 22.31 23.50 24.62 25.58 26.31 26.99 27.63 28.24
CCC/C 28.30 38.33 43.42 46.36 48.58 49.61 50.75 51.49 52.16 52.76 53.21 53.68 54.23 54.69 54.76
Investment grade 0.09 0.24 0.41 0.63 0.86 1.09 1.30 1.50 1.69 1.88 2.05 2.20 2.35 2.49 2.65
Speculative grade 3.71 7.19 10.18 12.63 14.64 16.30 17.68 18.83 19.86 20.81 21.61 22.29 22.93 23.49 24.04
All rated 1.53 3.00 4.27 5.35 6.25 7.01 7.64 8.18 8.67 9.12 9.50 9.83 10.13 10.41 10.69
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

The only exceptions to the correspondence between lower ratings and higher default rates occur when the number of defaults is low or when the underlying number of issuers is very small--such as at the rating modifier level among the higher rating categories (see table 26). Investment-grade-rated issuers seldom default, so the number of defaults among these rating categories is particularly low. This small sample size can, at times, result in historical default rates that seem counterintuitive. These default rates do not imply, however, that 'AAA' rated companies are riskier than 'AA+' rated companies, for example, but rather that both are highly unlikely to default.

Table 25

Average Cumulative Default Rates For Corporates By Region (1981-2020) (%)
--Time horizon (years)--
Rating 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
U.S.
AAA 0.00 0.04 0.17 0.29 0.41 0.54 0.58 0.66 0.75 0.83 0.87 0.91 0.96 1.05 1.14
AA 0.03 0.08 0.17 0.29 0.42 0.56 0.70 0.81 0.90 1.00 1.09 1.17 1.25 1.32 1.40
A 0.07 0.19 0.33 0.50 0.67 0.87 1.09 1.30 1.51 1.74 1.94 2.12 2.30 2.46 2.63
BBB 0.20 0.52 0.89 1.37 1.88 2.38 2.83 3.28 3.72 4.14 4.55 4.85 5.13 5.45 5.78
BB 0.74 2.31 4.18 6.01 7.68 9.29 10.66 11.94 13.08 14.13 15.01 15.85 16.60 17.21 17.87
B 3.53 8.31 12.61 16.02 18.72 20.95 22.73 24.18 25.46 26.65 27.66 28.44 29.20 29.90 30.56
CCC/C 30.26 41.68 47.45 50.92 53.49 54.65 56.04 56.84 57.58 58.20 58.79 59.26 59.77 60.22 60.22
Investment grade 0.11 0.30 0.52 0.80 1.10 1.40 1.69 1.96 2.23 2.50 2.75 2.95 3.14 3.33 3.53
Speculative grade 4.14 8.11 11.57 14.38 16.66 18.57 20.17 21.50 22.69 23.77 24.70 25.48 26.21 26.85 27.46
All rated 1.86 3.67 5.26 6.60 7.72 8.67 9.48 10.17 10.80 11.37 11.87 12.28 12.67 13.02 13.36
Europe
AAA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AA 0.00 0.02 0.05 0.10 0.16 0.21 0.24 0.27 0.30 0.30
A 0.03 0.07 0.10 0.15 0.23 0.29 0.38 0.41 0.43 0.44
BBB 0.06 0.17 0.30 0.43 0.54 0.78 0.96 1.11 1.27 1.42
BB 0.36 1.13 1.89 2.68 3.59 4.30 4.98 5.42 5.78 6.18
B 2.22 5.71 8.89 11.44 13.56 15.20 16.50 17.36 18.21 18.99
CCC/C 28.64 38.72 42.75 46.63 48.95 49.85 50.39 51.06 51.06 51.86
Investment grade 0.03 0.09 0.15 0.22 0.30 0.41 0.50 0.56 0.62 0.67
Speculative grade 2.88 5.59 7.78 9.64 11.23 12.39 13.34 13.98 14.53 15.10
All rated 0.78 1.50 2.08 2.56 2.97 3.30 3.55 3.71 3.85 3.97
Emerging markets
AAA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
AA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
A 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03
BBB 0.11 0.47 0.90 1.41 1.89 2.20 2.36 2.49 2.56 2.56
BB 0.54 1.58 2.72 3.83 4.77 5.43 6.00 6.40 6.82 7.14
B 3.06 6.42 8.97 10.99 12.43 13.58 14.59 15.57 16.32 17.12
CCC/C 19.17 24.01 26.60 27.38 28.69 29.57 30.15 30.81 31.53 32.05
Investment grade 0.08 0.31 0.58 0.91 1.21 1.41 1.51 1.59 1.63 1.63
Speculative grade 2.61 4.83 6.64 8.10 9.28 10.16 10.92 11.58 12.16 12.70
All rated 1.46 2.79 3.92 4.87 5.67 6.25 6.72 7.13 7.48 7.79
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 26

Global Corporate Average Cumulative Default Rates By Rating Modifier (1981-2020) (%)
--Time horizon (years)--
Rating 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
AAA 0.00 0.03 0.13 0.24 0.34 0.45 0.51 0.59 0.64 0.70 0.72 0.75 0.78 0.84 0.90
AA+ 0.00 0.05 0.05 0.10 0.15 0.20 0.25 0.31 0.36 0.42 0.48 0.53 0.59 0.66 0.72
AA 0.02 0.03 0.08 0.21 0.35 0.47 0.59 0.70 0.78 0.87 0.95 1.00 1.10 1.16 1.22
AA- 0.03 0.08 0.16 0.23 0.31 0.41 0.47 0.52 0.57 0.62 0.68 0.73 0.75 0.80 0.84
A+ 0.05 0.09 0.19 0.31 0.41 0.50 0.60 0.71 0.83 0.96 1.08 1.21 1.36 1.54 1.68
A 0.05 0.14 0.21 0.32 0.44 0.61 0.78 0.94 1.11 1.32 1.48 1.60 1.72 1.79 1.95
A- 0.06 0.16 0.25 0.36 0.51 0.66 0.87 1.03 1.15 1.27 1.37 1.50 1.62 1.74 1.84
BBB+ 0.09 0.26 0.47 0.67 0.90 1.15 1.35 1.56 1.82 2.07 2.30 2.46 2.64 2.87 3.12
BBB 0.15 0.37 0.59 0.93 1.27 1.62 1.94 2.24 2.56 2.88 3.22 3.49 3.72 3.82 4.03
BBB- 0.24 0.69 1.27 1.93 2.63 3.24 3.78 4.28 4.69 5.04 5.43 5.75 6.05 6.51 6.86
BB+ 0.32 0.97 1.76 2.55 3.35 4.14 4.82 5.32 5.92 6.52 6.93 7.42 7.92 8.27 8.82
BB 0.48 1.52 2.96 4.34 5.76 6.88 7.92 8.81 9.67 10.43 11.25 11.86 12.34 12.68 13.08
BB- 0.96 2.92 5.01 7.15 9.03 10.83 12.34 13.78 14.92 15.92 16.68 17.46 18.21 18.94 19.62
B+ 1.98 5.42 8.82 11.73 14.02 15.80 17.43 18.86 20.17 21.37 22.41 23.14 23.92 24.65 25.35
B 3.13 7.35 11.11 14.19 16.69 18.97 20.62 21.87 23.07 24.26 25.02 25.78 26.37 26.89 27.44
B- 6.52 13.69 19.28 23.16 25.97 28.07 29.63 30.86 31.72 32.45 33.61 34.32 34.89 35.46 35.88
CCC/C 28.30 38.33 43.42 46.36 48.58 49.61 50.75 51.49 52.16 52.76 53.21 53.68 54.23 54.69 54.76
Investment grade 0.09 0.24 0.41 0.63 0.86 1.09 1.30 1.50 1.69 1.88 2.05 2.20 2.35 2.49 2.65
Speculative grade 3.71 7.19 10.18 12.63 14.64 16.30 17.68 18.83 19.86 20.81 21.61 22.29 22.93 23.49 24.04
All rated 1.53 3.00 4.27 5.35 6.25 7.01 7.64 8.18 8.67 9.12 9.50 9.83 10.13 10.41 10.69
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Gini Ratios And Lorenz Curves

A quantitative analysis of the performance of S&P Global Ratings' corporate ratings shows that they continue to correlate with default risk across several time horizons. As one measure of ratings performance, the cumulative share of defaulters was plotted against the cumulative share of issuers by rating in a Lorenz curve to visually render the accuracy of its rank ordering (for definitions and methodology, refer to Appendix II). Over the long term, the global weighted average Gini coefficient was 82.8% over the one-year horizon, 75.3% over three years, 71.5% over five years, and 69.2% over seven years (see table 27). If the rank ordering of ratings had little predictive value, the cumulative share of defaulting corporate entities and the cumulative share of all entities at each rating would be nearly the same, producing a Gini ratio of zero.

Table 27

Corporate Gini Coefficients By Region (1981-2020) (%)
--Time horizon--
Region One-year Three-year Five-year Seven-year
Global
Weighted average 82.84 75.32 71.54 69.16
Average 85.41 78.62 74.28 71.24
Standard deviation (5.49) (5.21) (5.33) (5.27)
U.S.
Weighted average 80.98 72.88 69.05 66.64
Average 84.39 76.54 71.97 68.86
Standard deviation (6.90) (6.66) (6.65) (6.20)
Europe
Weighted average 90.45 85.18 82.47 79.87
Average 91.65 87.61 82.68 77.17
Standard deviation (4.89) (5.37) (6.45) (11.03)
Note: Numbers in parentheses are standard deviations. Average and standard deviation for Europe calculated for the period 1996-2020 due to sample size considerations. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

In line with expectations, the Gini coefficients decline over time because longer time horizons allow for greater credit degradation among higher-rated entities. In the one-year global Lorenz curve, for example, 96.6% of defaults occurred in the speculative-grade category, while these ratings constituted only 39.9% of all corporate ratings (see chart 26). In the seven-year Lorenz curve, speculative-grade issuers constituted 88.3% of defaulters and only 36.7% of the entire sample (see chart 29).

Table 28

Gini Coefficients For Global Corporates By Broad Sector (1981-2020) (%)
--Time horizon--
Sector One-year Three-year Five-year Seven-year
Financial
Weighted average 80.34 70.28 62.98 57.53
Average 83.38 76.23 68.48 62.34
Standard deviation (20.24) (14.93) (16.66) (16.46)
Nonfinancial
Weighted average 81.01 72.65 68.82 66.76
Average 84.42 76.83 72.58 69.78
Standard deviation (6.05) (5.28) (5.44) (5.05)
Note: Numbers in parentheses are standard deviations. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Chart 26

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Chart 27

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Chart 28

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Chart 29

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One-year Gini coefficients appear to be broadly cyclical and negatively correlated with default rates (see chart 30). Trends in the one-year Gini ratio emerge during periods of both high and low default rates, which reflects the natural relationship between the two extremes. In periods of high defaults, there tends to be greater variation in the distribution of ratings prior to default, which reduces the Gini. That is, when default pressure is high, economic conditions are such that the likelihood of companies from across the rating spectrum suffering a more rapid deterioration of credit quality is higher.

However, despite posting the 10th-highest annual default rate in 2020, the global Gini ratio finished closer to the middle of the annual distribution (18th), based on 40 years of observations. The one-year Gini ratio in 2020 was 86.1%, alongside a speculative-grade default rate of 5.5%. This compares with a Gini of 88.3% and a default rate of 2.5% in 2019.

Chart 30

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Appendix I: Methodology And Definitions

This long-term corporate default and rating transition study uses the CreditPro database of long-term local currency issuer credit ratings. The analysis excludes public information ("pi") ratings and ratings based on the guarantee of another company or government entity. We also do not include short-term issuer credit ratings.

S&P Global Ratings does not require all issuers with rated debt to have an issuer credit rating. Therefore, if an issuer has rated debt but not an issuer credit rating, we assign a proxy rating so that the CreditPro corporate dataset accurately represents the complete universe of ratings. The local currency senior unsecured rating is the preferred debt rating used for the proxy because it is usually consistent with the issuer credit rating. In a small number of cases, we use the subordinated debt rating or the senior secured rating as the proxy.

An S&P Global Ratings issuer credit rating is a forward-looking opinion about an obligor's overall creditworthiness. This opinion focuses on the obligor's capacity and willingness to meet its financial commitments as they come due. It does not apply to any specific financial obligation because it does not take into account the nature and provisions of any single obligation, its standing in bankruptcy or liquidation, statutory preferences, or the legality and enforceability of the obligation. Counterparty credit ratings, corporate credit ratings, and sovereign credit ratings are all forms of issuer credit ratings. Issuer credit ratings can be either long-term or short-term.

Our ongoing enhancement of the database used to generate this study could lead to outcomes that differ to some degree from those reported in previous studies. However, this poses no continuity problem because each study reports statistics back to Dec. 31, 1980. Therefore, each annual default study is self-contained and effectively supersedes all previous versions.

Issuers included in this study

This study analyzes the rating histories of 21,693 companies that S&P Global Ratings rated as of Dec. 31, 1980, or that were first rated between that date and Dec. 31, 2020. These include industrials, utilities, financial institutions, and insurance companies around the world with long-term local currency ratings. Structured finance vehicles, public-sector issuers, and sovereign issuers are the subjects of separate default and transition studies, and we exclude them from this study.

In this study, the insurance industry includes life insurance, health insurance, property/casualty insurance, reinsurance, bond insurance, mortgage insurance, and title insurance. In addition to these subsectors, this study groups insurance service providers (such as insurance brokers and third-party administrators that are rated according to corporate criteria) with the insurance industry.

To avoid overcounting, we exclude subsidiaries with debt that is fully guaranteed by a parent or with default risk that is considered identical to that of a parent. The latter are companies with obligations that are not legally guaranteed by a parent but that have operating or financing activities that are so inextricably entwined with those of the parent that it would be impossible to imagine the default of one and not the other. At times, however, some of these subsidiaries might not yet have been covered by a parent's guarantee, or the relationship that combines the default risk of parent and subsidiary might have come to an end or might not have begun. We included such subsidiaries for the period during which they had a distinct and separate risk of default.

Issuers with withdrawn ratings

S&P Global Ratings withdraws ratings when an entity's entire debt is paid off or when the program or programs rated are terminated and the relevant debt extinguished. Others are withdrawn because of a lack of cooperation, particularly when a company is experiencing financial difficulties and refuses to provide all the information needed to continue surveillance on the ratings, or at the entity's request. For the purposes of this study, a corporate rating may also be withdrawn as a result of mergers and acquisitions.

Definition of default

An obligor rated 'SD' (selective default) or 'D' (default) is in default on one or more of its financial obligations, including rated and unrated financial obligations but excluding hybrid instruments classified as regulatory capital or in nonpayment according to terms. An obligor is considered in default unless S&P Global Ratings believes that such payments will be made within five business days of the due date in the absence of a stated grace period, or within the earlier of the stated grace period or 30 calendar days.

A 'D' rating is assigned when S&P Global Ratings believes that the default will be a general default and that the obligor will fail to pay all or substantially all of its obligations as they come due. An 'SD' rating is assigned when S&P Global Ratings believes that the obligor has selectively defaulted on a specific issue or class of obligations but will continue to meet its payment obligations on other issues or classes of obligations in a timely manner. S&P Global Ratings lowers its rating on an obligor to 'D' or 'SD' if the obligor is conducting a distressed exchange offer.

'R' (regulatory intervention) indicates that an obligor is under regulatory supervision owing to its financial condition. This does not necessarily indicate a default event, but during the period of regulatory supervision, the regulators may have the power to favor one class of obligations over others or pay some obligations and not others. Preferred stock is not considered a financial obligation; thus, a missed preferred stock dividend is not normally equated with default. On July 5, 2019, we removed the 'R' symbol from all rating scales.

We deem 'D', 'SD', and 'R' issuer ratings to be defaults for the purposes of this study. A default is assumed to take place on the earliest of:

  • The date S&P Global Ratings revised the rating(s) to 'D', 'SD', or 'R';
  • The date a debt payment was missed;
  • The date a distressed exchange offer was announced; or
  • The date the debtor filed for, or was forced into, bankruptcy.

When an issuer defaults, it is not uncommon for S&P Global Ratings to subsequently withdraw the 'D' rating. For the purposes of this study, if an issuer defaults, we end its rating history at 'D'. If any defaulting entity reemerges from bankruptcy--or otherwise restructures its defaulted debt instruments, thereby reestablishing regular, timely payment of all its debts--we reenter this issuer into the database as a new entity. Its rating history after the default event is included in all calculations as entirely separate from its experience leading up to its earlier default.

Many practitioners use statistics from this default study to estimate the "probability of default" and "probability of rating transition." It is important to note that S&P Global Ratings' credit ratings do not imply a specific probability of default.

Regional definitions

Within this study, tables and charts are often presented using specific geographic regions. Some countries can be included in multiple regions, and S&P Global Ratings does not have corporate ratings within every country. The regions covered in this study are:

U.S. and tax havens:  U.S., Bermuda, and the Cayman Islands

Other developed:  Australia, Canada, Japan, and New Zealand

Europe:  Austria, Belgium, British Virgin Islands, Bulgaria, Channel Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova Republic of, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, and the U.K.

Emerging markets:  Angola, Argentina, Armenia, Aruba, Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belize, Bhutan, Bolivia, Bosnia-Herzegovina, Brazil, Brunei Darussalam, Cambodia, Chile, China, Colombia, Costa Rica, Curacao, Dominican Republic, Ecuador, Egypt, El Salvador, Fiji, Gabon, Georgia, Ghana, Grenada, Guatemala, Honduras, Hong Kong, India, Indonesia, Israel, Jamaica, Jordan, Kazakhstan, Kenya, Korea (Republic of), Kuwait, Lebanon, Liberia, Macao Special Administrative Region of China, Malaysia, Marshall Islands, Mauritius, Mexico, Mongolia, Morocco, Namibia, Netherlands Antilles, Nigeria, Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Qatar, Russian Federation, Saudi Arabia, Singapore, South Africa, Sri Lanka, Syrian Arab Republic, Taiwan, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Turks and Caicos Islands, Ukraine, United Arab Emirates, Uruguay, Uzbekistan, Venezuela, Vietnam, and Yemen

Calculations

Static pool methodology.  S&P Global Ratings Research conducts its default studies on the basis of groupings called static pools. For the purposes of this study, we form static pools by grouping issuers (for example, by rating category) at the beginning of each year, quarter, or month that the database covers. Each static pool is followed from that point forward. All companies included in the study are assigned to one or more static pools. When an issuer defaults, we assign that default to all of the static pools to which the issuer belonged.

We use the static pool methodology to avoid certain pitfalls in estimating default rates, such as by ensuring that default rates account for rating migration and allowing for default rates to be calculated across multiperiod time horizons. Some methods for calculating default and rating transition rates might charge defaults against only the initial rating on the issuer, ignoring more recent rating changes that supply more current information. Other methods may calculate default rates using only the most recent year's default and rating data, which may yield comparatively low default rates during periods of high rating activity because they ignore prior years' default activity.

The pools are static in the sense that their membership remains constant over time. Each static pool can be interpreted as a buy-and-hold portfolio. Because errors, if any, are corrected by every new update and because the criteria for inclusion or exclusion of companies in the default study are subject to minor revisions as time goes by, it is not possible to compare static pools across different studies. Therefore, every update revises results back to the same starting date of Dec. 31, 1980, so as to avoid continuity problems.

Entities that have had ratings withdrawn--that is, revised to not rated (NR)--are surveilled with the aim of capturing a potential default. Because static pools include only entities with active ratings as of the beginning date of a given pool, we exclude companies with withdrawn ratings, as well as those that have defaulted, from subsequent static pools. If the rating on an entity is withdrawn after the start date of a particular static pool and the entity subsequently defaults, we will include the entity in that static pool as a defaulter and categorize it in the rating category of which it was a member at that time.

For instance, the 1981 static pool consists of all companies rated as of 12:00:01 a.m. on Jan. 1, 1981. Adding those companies first rated in 1981 to the surviving members (those still actively rated and not in default) of the 1981 static pool forms the 1982 static pool. All rating changes that took place are reflected in the newly formed 1982 static pool through the ratings on these entities as of 12:00:01 a.m. on Jan. 1, 1982. We used the same method to form static pools for 1983-2020. From Jan. 1, 1981-Dec. 31, 2020, a total of 21,693 first-time-rated organizations were added to form new static pools, while we excluded 3,098 defaulting companies and 11,448 companies that are no longer assigned ratings (NR).

Consider the following example: An issuer is originally rated 'BB' in mid-1986 and is downgraded to 'B' in 1988. This is followed by a rating withdrawal in 1990 and a default in 1993. We would include this hypothetical company in the 1987 and 1988 pools with the 'BB' rating, which was the rating on the issuer at the beginning of those years. Likewise, it would be included in the 1989 and 1990 pools with the 'B' rating. It would not be part of the 1986 pool because it was not rated as of the first day of that year, and it would not be included in any pool after the last day of 1990 because the rating had been withdrawn by then. Yet each of the four pools in which this company was included (1987-1990) would record its 1993 default at the appropriate time horizon.

Default rate calculation.  We calculated annual default rates for each static pool, first in units and later as percentages with respect to the number of issuers in each rating category. We combined these percentages to obtain cumulative default rates for the 40 years the study covers (see tables 24-26 and 30-32).

Issuer-weighted default rates.  All default rates that appear in this study are based on the number of issuers rather than the dollar amounts affected by defaults or rating changes. Although dollar amounts provide information about the portion of the market that is affected by defaults or rating changes, issuer-weighted averages are more useful measures of the performance of ratings.

Average cumulative default rate calculation.  The cumulative default rates in this study average the experience of all static pools by first calculating marginal default rates for each possible time horizon and for each static pool, weight-averaging the marginal default rates conditional on survival (survivors being nondefaulters), and accumulating the average conditional marginal default rates (see tables 24-26 and 30-32). We calculated conditional default rates by dividing the number of issuers in a static pool that default at a specific time horizon by the number of issuers that survived (did not default) to that point in time. Weights are based on the number of issuers in each static pool. Cumulative default rates are one minus the product of the proportion of survivors (nondefaulters).

For instance, in table 32, the weighted average first-year default rate for all speculative-grade-rated companies for all 40 pools was 3.71%, meaning that an average of 96.29% survived one year. Similarly, the second- and third-year conditional marginal averages--shown in the "Summary statistics" section at the bottom portion of the table--were 3.61% for the first 39 pools (96.39% of those companies that did not default in the first year survived the second year) and 3.23% for the first 38 pools (96.77% of those companies that did not default by the second year survived the third year), respectively. Multiplying 96.29% by 96.39% results in a 92.81% survival rate to the end of the second year, which leads to a two-year average cumulative default rate of 7.19%. Multiplying 92.81% by 96.77% results in a 89.82% survival rate to the end of the third year, which results in a three-year average cumulative default rate of 10.18%.

Transition analysis

Transition rates compare issuer credit ratings at the beginning of a period with ratings at the end of the period. To compute one-year rating transition rates by rating category, we compared the rating on each entity at the end of a particular year with the rating at the beginning of the same year. An issuer that remained rated for more than one year was counted as many times as the number of years it was rated.

For instance, an issuer continually rated from the middle of 1984 to the middle of 1991 would appear in the seven consecutive one-year transition matrices from 1985-1991. If the rating on the issuer was withdrawn in the middle of 1991, it would be included in the column representing transitions to NR in the 1991 transition matrix. Similarly, if it defaulted in the middle of 1991, it would be included in the column representing transitions to 'D' in the 1991 one-year transition matrix.

All 1981 static pool members still rated on Jan. 1, 2020, had 40 one-year transitions, while companies first rated on Jan. 1, 2020, had only one. Table 29 displays the summary of one-year transitions in the investment-grade and speculative-grade rating categories. Each one-year transition matrix displays all rating movements between letter categories from the beginning of the year through year-end. For each rating listed in the matrix's leftmost column, there are nine ratios listed in the rows, corresponding to the ratings from 'AAA' to 'D', plus an entry for NR (see table 22).

The only ratings considered in these calculations are those on entities at the beginning of each static pool and those at the end. All rating changes that occur in between are ignored. For example, if an entity was rated 'A' on Jan. 1, 2020, and was downgraded to 'BBB' in the middle of the year and then upgraded to 'A' later in the year (with no other subsequent rating changes), this entity would be included only in the percentage of issuers that began the year as 'A' that ended the year as 'A'. This also applies to transition matrices that span longer time horizons. If an issuer defaults or if the rating on the issuer is withdrawn in the middle of the year, then it would be considered rated 'D' or not rated as of Dec. 31 of that particular year.

Table 29

Summary Of One-Year Global Corporate Rating Transitions
--Investment-grade rating distribution at year-end-- --Speculative-grade rating distribution at year-end--
Year Jan. 1 investment grade Investment grade (%) Speculative grade (%)* Defaulted (%)§ Rating withdrawn (%) Jan. 1 speculative grade Investment grade (%)† Speculative grade (%) Defaulted (%) Rating withdrawn (%)
1981 1,031 97.38 1.36 0.00 1.26 318 4.72 89.94 0.63 4.72
1982 1,062 93.50 3.11 0.19 3.20 336 2.68 80.36 4.46 12.50
1983 1,084 94.28 2.12 0.09 3.51 336 3.27 83.33 2.98 10.42
1984 1,147 95.38 2.27 0.17 2.18 363 4.96 87.05 3.31 4.68
1985 1,186 93.17 3.54 0.00 3.29 412 3.88 85.68 4.37 6.07
1986 1,313 90.25 3.73 0.15 5.86 522 3.07 81.99 5.75 9.20
1987 1,320 90.30 3.11 0.00 6.59 671 3.58 79.43 2.83 14.16
1988 1,334 91.90 2.77 0.00 5.32 747 3.61 79.65 3.88 12.85
1989 1,378 93.47 2.69 0.22 3.63 744 5.24 75.13 4.70 14.92
1990 1,427 94.67 2.10 0.14 3.08 690 3.19 75.07 8.12 13.62
1991 1,465 96.31 1.77 0.14 1.77 588 3.06 77.89 11.05 7.99
1992 1,614 96.47 1.24 0.00 2.29 523 6.31 78.59 6.12 8.99
1993 1,763 92.74 1.53 0.00 5.73 558 4.66 76.70 2.51 16.13
1994 1,845 95.83 0.76 0.05 3.36 708 4.10 86.02 2.12 7.77
1995 2,042 95.49 1.13 0.05 3.33 820 3.78 85.00 3.54 7.68
1996 2,234 94.54 0.63 0.00 4.83 883 4.76 80.97 1.81 12.46
1997 2,484 93.32 1.17 0.08 5.43 994 4.33 81.09 2.01 12.58
1998 2,761 90.44 2.21 0.14 7.21 1,307 2.98 83.86 3.67 9.49
1999 2,867 90.65 1.64 0.17 7.53 1,651 1.64 81.34 5.57 11.45
2000 2,923 91.58 1.78 0.24 6.40 1,747 2.18 83.34 6.24 8.24
2001 2,997 90.66 2.67 0.23 6.44 1,748 1.49 79.35 9.90 9.27
2002 3,107 89.41 3.96 0.42 6.21 1,673 1.79 79.62 9.50 9.09
2003 3,022 92.42 2.51 0.10 4.96 1,755 1.54 81.99 5.07 11.40
2004 3,136 94.10 1.02 0.03 4.85 1,875 2.19 84.53 2.03 11.25
2005 3,245 92.94 1.57 0.03 5.45 2,056 3.11 82.34 1.51 13.04
2006 3,272 93.83 1.41 0.00 4.77 2,188 2.19 82.08 1.19 14.53
2007 3,348 90.08 1.76 0.00 8.15 2,300 3.04 81.78 0.91 14.26
2008 3,324 92.30 1.96 0.42 5.32 2,399 2.13 83.33 3.71 10.84
2009 3,355 89.48 3.37 0.33 6.83 2,252 1.29 77.04 9.95 11.72
2010 3,189 94.76 0.94 0.00 4.30 2,116 2.32 84.92 3.02 9.74
2011 3,240 93.36 1.76 0.03 4.85 2,381 2.35 84.04 1.85 11.76
2012 3,253 93.76 1.72 0.00 4.52 2,550 1.92 85.57 2.59 9.92
2013 3,263 94.97 1.38 0.00 3.65 2,773 2.13 85.29 2.31 10.28
2014 3,360 95.71 1.22 0.00 3.07 3,118 1.41 85.57 1.44 11.58
2015 3,512 92.91 2.56 0.00 4.53 3,383 1.36 83.77 2.78 12.09
2016 3,527 93.08 1.76 0.03 5.13 3,375 1.16 82.93 4.24 11.67
2017 3,512 94.19 1.42 0.00 4.38 3,365 1.46 82.11 2.47 13.97
2018 3,535 95.13 0.79 0.00 4.07 3,431 1.57 84.26 2.10 12.07
2019 3,608 95.12 0.67 0.06 4.16 3,626 0.99 85.02 2.54 11.45
2020 3,617 93.78 2.43 0.00 3.79 3,605 0.31 84.27 5.49 9.93
Weighted average 100,702 93.19 1.85 0.09 4.87 66,887 2.09 82.86 3.71 11.33
Median 93.49 1.76 0.03 4.65 2.52 82.64 3.17 11.42
Standard deviation 2.05 0.87 0.12 1.59 1.37 3.27 2.63 2.64
Minimum 89.41 0.63 0.00 1.26 0.31 75.07 0.63 4.68
Maximum 97.38 3.96 0.42 8.15 6.31 89.94 11.05 16.13
*Fallen angels that survived to Jan. 1 of the year after they were downgraded. §Investment-grade defaulters. †Rising stars. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Multiyear transitions.  Multiyear transitions were also calculated for periods of two up to 20 years. In this case, we compared the rating at the beginning of the multiyear period with the rating at the end. For example, three-year transition matrices were the result of comparing ratings at the beginning of the years 1981-2018 with the ratings at the end of the years 1983-2020. Otherwise, the methodology was identical to that used for single-year transitions.

We calculated average transition matrices on the basis of the multiyear matrices just described. These average matrices are a true summary, the ratios of which represent the historical incidence of the ratings listed in the first column changing to the ones listed in the top row over the course of the multiyear period (see tables 33-40). Transition matrices that present averages over multiple time horizons are also calculated as issuer-weighted averages.

Rating modifiers

We use rating modifiers (plus and minus signs) to calculate upgrade and downgrade percentages, as well as the magnitude of rating changes, throughout this study. However, some transition tables may use full rating categories for practical reasons. In other words, the use of a rating category suggests that transitions, for example, to 'AA' from 'AA-' or to 'BBB+' from 'BBB-', are not considered to be rating transitions because the rating remained within the rating category.

Comparing transition rates with default rates

Rating transition rates may be compared with the marginal and cumulative default rates described in the previous sections. For example, the one-year default rate column of table 24 is equivalent to column 'D' of the average one-year transition matrix in table 21, as well as the cumulative average in the "Summary statistics" of the one-year column in table 32.

However, the two-year default rate column in table 24 is not the same as column 'D' of the average two-year transition matrix in table 34. This difference results from the different methods of calculating default rates. The default rates in table 34 are calculated as not conditional on survival, while those in table 24 are average default rates conditional on survival. The two-year default rates in table 24 are calculated in the same way as those in the cumulative average section for the two-year column in table 32, while those in the 'D' column of table 34 are equivalent to adding up all the defaults behind the two-year column's annual default rates in table 32, divided by the sum of all the issuers in table 32 for the years 1981-2020.

The links between transition matrices and average cumulative default rates are best illustrated through tables 30-32. The default rates in the columns of these tables, associated with each static pool year, are calculated in the same way as they would be for individual years' one-year transition matrices. Tables 30, 31, and 32 are broken out by the broadest rating classifications (all rated, investment grade, and speculative grade). These tables can also be constructed for each rating category.

As an example, the two-year column of table 32 shows the two-year default rates (not conditional on survival) for each static pool. These are calculated in the same way as the default column in table 20, though table 20 shows the one-year default rates for each rating category for 2020 exclusively. In the summary section at the bottom of tables 30-32, the first row shows the issuer-weighted averages of the marginal default rates. These marginal averages are then used to calculate the cumulative average default rates in the row directly beneath them, as explained in the "Average cumulative default rate" section above. These default rates are the same that appear in table 24 and are average cumulative default rates conditional on survival.

Standard deviations

Many of the tables and charts in this study display averages of default rates, transition rates, and Gini ratios. Often these are issuer-weighted averages. Prior studies have shown that fluctuations within default rates and transitions can vary greatly depending on many circumstances specific to particular time frames, industries, and geographic regions. As a supplement to many of the averages and time series presented in this study, standard deviations are also shown to provide a gauge of the dispersion of data behind these averages.

For the transition matrices in tables 21-23 and 33-44, the standard deviation for each cell in a given matrix is a weighted standard deviation, calculated using the data from each of the underlying cohort years that contribute to the averages, weighted by that cohort year's issuer base for each rating level. For example, in the average one-year global transition matrix in table 33, each cell's weighted standard deviation is calculated from the series of that particular cell in each of the 40 cohorts beginning with the 1981 cohort and ending with the 2020 cohort. The squared difference between each cohort's transition rate and the weighted average--which is the data point in each cell--is multiplied by each cohort's weight. These weights are based on each cohort's rating level's contribution to the 40-year total issuer base for each rating level. We then divide this by the ratio of the total number of nonzero weights minus one and the total number of nonzero weights.

For the Gini ratios in tables 2, 27, and 28, the standard deviations are derived from the time series of Gini ratios for all of their constituent annual cohorts. As an example, the standard deviation applied to the seven-year weighted average global Gini ratio in table 2 (5.3%) was calculated from the time series of all available seven-year Gini ratios by cohort. In this case, these are the seven-year Gini ratios from the 1981 cohort through the 2014 seven-year cohort. We calculated standard deviations for Gini ratios in this study as the standard deviations of a sample, and not those of a population.

Time sample

This study limits the reporting of default rates to the 15-year time horizon. However, the data was gathered for 40 years, and all calculations are based on the rating experience of that period. In addition, average default statistics become less reliable at longer time horizons as the sample size becomes smaller and the cyclical nature of default rates has a bigger effect on averages.

Table 30

Static Pool Cumulative Global Corporate Default Rates Among All Ratings (1981-2020) (%)
--Time horizon (years)--
Year Issuers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1981 1,349 0.15 1.41 2.15 2.97 3.63 5.04 5.49 6.30 6.89 8.01 9.71 10.16 10.67 10.75 10.97
1982 1,398 1.22 1.93 2.79 3.51 4.94 5.29 6.08 6.58 7.73 9.59 10.09 10.66 10.73 10.94 10.94
1983 1,420 0.77 1.62 2.46 4.08 4.51 5.56 6.06 7.18 9.23 9.79 10.35 10.42 10.63 10.63 10.70
1984 1,510 0.93 1.99 3.84 4.30 5.36 6.09 7.28 9.01 9.60 10.20 10.26 10.46 10.46 10.60 10.60
1985 1,598 1.13 3.07 3.63 5.01 5.88 7.20 9.07 9.64 10.14 10.20 10.51 10.51 10.64 10.64 10.95
1986 1,835 1.74 2.34 3.65 4.52 5.94 7.85 8.50 9.05 9.21 9.48 9.59 9.81 9.92 10.19 10.57
1987 1,991 0.95 2.41 3.87 5.73 8.29 9.39 10.15 10.40 10.75 10.90 11.10 11.20 11.50 11.95 13.01
1988 2,081 1.39 3.03 5.19 8.27 9.37 10.14 10.38 10.86 11.00 11.29 11.48 11.82 12.49 13.46 14.46
1989 2,122 1.79 4.38 7.92 9.10 9.90 10.23 10.65 10.79 11.07 11.45 11.78 12.39 13.38 14.33 14.80
1990 2,117 2.74 6.14 7.56 8.36 8.69 9.16 9.26 9.64 10.11 10.49 11.24 12.23 13.27 13.79 13.93
1991 2,053 3.26 4.77 5.31 5.65 6.19 6.28 6.62 7.06 7.45 8.13 9.21 10.33 10.81 11.01 11.15
1992 2,137 1.50 2.01 2.34 2.95 3.09 3.42 3.84 4.16 4.87 5.90 7.02 7.44 7.63 7.77 7.91
1993 2,321 0.60 1.08 1.98 2.20 2.59 3.02 3.45 4.22 5.39 6.55 6.98 7.15 7.32 7.54 7.67
1994 2,553 0.63 1.76 2.15 2.62 3.09 3.96 4.97 6.35 7.56 8.07 8.30 8.46 8.73 8.85 9.44
1995 2,862 1.05 1.54 2.03 2.59 3.56 4.58 6.46 7.86 8.49 8.74 8.94 9.19 9.29 9.82 10.69
1996 3,117 0.51 1.09 1.83 2.98 4.01 5.77 7.31 8.02 8.31 8.53 8.76 8.89 9.43 10.30 10.46
1997 3,478 0.63 1.61 2.93 4.34 6.30 8.08 9.03 9.32 9.55 9.83 9.98 10.58 11.44 11.53 11.64
1998 4,068 1.28 3.24 5.24 7.89 10.10 11.36 11.85 12.17 12.49 12.64 13.27 14.23 14.33 14.45 14.58
1999 4,518 2.15 4.67 8.01 10.91 12.42 12.97 13.32 13.68 13.83 14.63 15.78 15.96 16.09 16.25 16.33
2000 4,670 2.48 6.08 9.27 10.99 11.69 12.14 12.51 12.72 13.60 14.99 15.16 15.33 15.48 15.63 15.70
2001 4,745 3.79 7.38 9.36 10.07 10.60 10.96 11.17 12.01 13.49 13.68 13.85 14.01 14.20 14.27 14.52
2002 4,780 3.60 5.63 6.42 6.88 7.24 7.45 8.39 9.98 10.19 10.36 10.54 10.79 10.86 11.11 11.38
2003 4,777 1.93 2.72 3.22 3.62 3.83 4.81 6.64 6.91 7.08 7.35 7.64 7.72 8.00 8.27 8.56
2004 5,011 0.78 1.32 1.72 1.96 2.99 4.99 5.33 5.55 5.85 6.13 6.21 6.49 6.77 7.04 7.18
2005 5,301 0.60 1.02 1.36 2.57 4.87 5.36 5.66 6.00 6.30 6.43 6.79 7.09 7.34 7.47 7.73
2006 5,460 0.48 0.88 2.33 5.04 5.66 6.08 6.58 6.94 7.09 7.47 7.86 8.10 8.24 8.50 8.83
2007 5,648 0.37 2.04 5.29 6.16 6.62 7.22 7.65 7.83 8.29 8.71 8.96 9.08 9.35 9.74
2008 5,723 1.80 5.59 6.67 7.13 7.86 8.26 8.53 9.05 9.52 9.79 10.01 10.27 10.80
2009 5,607 4.19 5.35 5.83 6.58 6.99 7.28 7.81 8.36 8.65 8.88 9.11 9.65
2010 5,305 1.21 1.90 2.75 3.22 3.62 4.18 4.94 5.30 5.54 5.84 6.50
2011 5,621 0.80 1.94 2.63 3.11 3.90 4.84 5.23 5.48 5.76 6.53
2012 5,803 1.14 2.07 2.57 3.46 4.58 5.12 5.48 5.81 6.62
2013 6,036 1.06 1.66 2.83 4.22 4.90 5.30 5.65 6.54
2014 6,478 0.69 1.98 3.58 4.45 5.00 5.48 6.58
2015 6,895 1.36 3.29 4.26 4.95 5.64 7.03
2016 6,902 2.09 3.12 3.91 4.62 6.19
2017 6,877 1.21 2.12 3.02 4.89
2018 6,966 1.03 2.14 4.29
2019 7,234 1.30 3.79
2020 7,222 2.74
Summary statistics
Marginal average 1.53 1.49 1.31 1.12 0.95 0.81 0.69 0.58 0.53 0.49 0.43 0.36 0.34 0.31 0.31
Cumulative average 1.53 3.00 4.27 5.35 6.25 7.01 7.64 8.18 8.67 9.12 9.50 9.83 10.13 10.41 10.69
Standard deviation 0.98 1.68 2.17 2.46 2.59 2.54 2.48 2.46 2.45 2.43 2.40 2.40 2.48 2.57 2.62
Median 1.21 2.12 3.61 4.52 5.65 6.09 6.96 7.86 8.57 9.48 9.84 10.33 10.66 10.64 10.95
Minimum 0.15 0.88 1.36 1.96 2.59 3.02 3.45 4.16 4.87 5.84 6.21 6.49 6.77 7.04 7.18
Maximum 4.19 7.38 9.36 10.99 12.42 12.97 13.32 13.68 13.83 14.99 15.78 15.96 16.09 16.25 16.33
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 31

Static Pool Cumulative Global Corporate Default Rates Among All Investment-Grade Ratings (1981-2020) (%)
--Time horizon (years)--
Year Issuers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1981 1,031 0.00 0.39 0.39 0.48 0.68 1.07 1.36 2.13 2.33 3.10 4.17 4.36 4.56 4.56 4.75
1982 1,062 0.19 0.28 0.38 0.56 1.04 1.32 2.07 2.26 3.11 4.24 4.52 4.80 4.80 4.99 4.99
1983 1,084 0.09 0.37 0.46 0.92 1.11 1.66 1.75 2.58 3.69 4.06 4.34 4.34 4.52 4.52 4.52
1984 1,147 0.17 0.26 0.61 0.78 1.22 1.39 2.09 3.05 3.40 3.66 3.66 3.84 3.84 3.92 3.92
1985 1,186 0.00 0.17 0.25 0.84 1.01 1.77 2.78 3.12 3.37 3.37 3.63 3.63 3.79 3.79 3.96
1986 1,313 0.15 0.15 0.53 0.69 1.22 2.13 2.51 2.67 2.67 2.89 2.89 3.05 3.12 3.27 3.58
1987 1,320 0.00 0.15 0.38 0.83 1.74 2.27 2.42 2.50 2.65 2.65 2.80 2.88 3.03 3.18 4.02
1988 1,334 0.00 0.22 0.37 0.97 1.50 1.65 1.72 1.87 1.87 2.02 2.02 2.17 2.32 3.00 3.82
1989 1,378 0.22 0.36 0.65 1.23 1.38 1.45 1.60 1.60 1.60 1.60 1.81 1.96 2.76 3.41 3.77
1990 1,427 0.14 0.35 0.77 0.98 1.05 1.19 1.19 1.19 1.26 1.54 1.89 2.59 3.15 3.50 3.57
1991 1,465 0.14 0.27 0.41 0.48 0.61 0.61 0.61 0.68 1.02 1.37 2.12 2.66 2.94 3.00 3.07
1992 1,614 0.00 0.06 0.12 0.25 0.25 0.25 0.31 0.56 0.81 1.36 1.86 2.11 2.17 2.29 2.48
1993 1,763 0.00 0.06 0.17 0.17 0.23 0.40 0.74 1.08 1.70 2.33 2.55 2.55 2.67 2.78 2.84
1994 1,845 0.05 0.16 0.16 0.27 0.38 0.81 1.08 1.68 2.28 2.55 2.60 2.66 2.82 2.87 3.25
1995 2,042 0.05 0.05 0.10 0.20 0.69 0.93 1.67 2.25 2.50 2.55 2.60 2.74 2.79 3.18 3.53
1996 2,234 0.00 0.04 0.09 0.49 0.81 1.52 2.06 2.28 2.37 2.42 2.55 2.55 2.95 3.40 3.45
1997 2,484 0.08 0.16 0.48 0.81 1.37 2.09 2.46 2.54 2.58 2.70 2.70 3.10 3.50 3.54 3.66
1998 2,761 0.14 0.43 0.80 1.38 2.39 2.83 3.01 3.11 3.19 3.19 3.66 4.20 4.27 4.42 4.56
1999 2,867 0.17 0.49 0.91 1.88 2.34 2.48 2.58 2.72 2.72 3.24 3.91 3.98 4.12 4.29 4.33
2000 2,923 0.24 0.58 1.54 2.02 2.12 2.26 2.39 2.39 2.98 3.66 3.73 3.90 4.04 4.07 4.14
2001 2,997 0.23 1.23 1.67 1.84 2.00 2.14 2.14 2.67 3.40 3.44 3.60 3.77 3.84 3.87 4.07
2002 3,107 0.42 0.77 0.90 1.03 1.09 1.09 1.64 2.29 2.32 2.45 2.61 2.70 2.74 2.93 3.03
2003 3,022 0.10 0.20 0.30 0.33 0.33 0.86 1.59 1.62 1.72 1.79 1.89 1.92 2.15 2.25 2.32
2004 3,136 0.03 0.10 0.13 0.13 0.64 1.28 1.34 1.43 1.53 1.63 1.63 1.85 1.95 1.98 2.01
2005 3,245 0.03 0.06 0.06 0.62 1.20 1.29 1.39 1.48 1.57 1.57 1.79 1.88 1.88 1.91 1.97
2006 3,272 0.00 0.00 0.49 0.92 1.01 1.10 1.16 1.25 1.25 1.44 1.50 1.50 1.50 1.53 1.59
2007 3,348 0.00 0.48 0.93 1.11 1.19 1.28 1.34 1.34 1.49 1.55 1.55 1.55 1.58 1.67
2008 3,324 0.42 0.81 0.96 1.08 1.17 1.23 1.23 1.38 1.50 1.50 1.53 1.56 1.62
2009 3,355 0.33 0.45 0.54 0.60 0.63 0.63 0.77 0.89 0.89 0.92 0.95 1.01
2010 3,189 0.00 0.03 0.06 0.09 0.09 0.25 0.38 0.38 0.44 0.50 0.53
2011 3,240 0.03 0.06 0.06 0.06 0.09 0.25 0.25 0.31 0.37 0.46
2012 3,253 0.00 0.00 0.00 0.03 0.22 0.22 0.28 0.34 0.43
2013 3,263 0.00 0.00 0.00 0.15 0.15 0.25 0.31 0.43
2014 3,360 0.00 0.00 0.15 0.15 0.24 0.33 0.48
2015 3,512 0.00 0.06 0.06 0.14 0.20 0.37
2016 3,527 0.03 0.03 0.11 0.17 0.37
2017 3,512 0.00 0.00 0.06 0.17
2018 3,535 0.00 0.06 0.11
2019 3,608 0.06 0.08
2020 3,617 0.00
Summary statistics
Marginal average 0.09 0.15 0.18 0.22 0.23 0.23 0.21 0.20 0.19 0.19 0.18 0.15 0.15 0.15 0.16
Cumulative average 0.09 0.24 0.41 0.63 0.86 1.09 1.30 1.50 1.69 1.88 2.05 2.20 2.35 2.49 2.65
Standard deviation 0.12 0.27 0.40 0.53 0.64 0.72 0.80 0.87 0.95 1.01 1.04 1.01 0.96 0.92 0.89
Median 0.03 0.16 0.38 0.60 1.01 1.23 1.49 1.68 2.08 2.42 2.57 2.66 2.94 3.27 3.62
Minimum 0.00 0.00 0.00 0.03 0.09 0.22 0.25 0.31 0.37 0.46 0.53 1.01 1.50 1.53 1.59
Maximum 0.42 1.23 1.67 2.02 2.39 2.83 3.01 3.12 3.69 4.24 4.52 4.80 4.80 4.99 4.99
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 32

Static Pool Cumulative Global Corporate Default Rates Among All Speculative-Grade Ratings (1981-2020) (%)
--Time horizon (years)--
Year Issuers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1981 318 0.63 4.72 7.86 11.01 13.21 17.92 18.87 19.81 21.70 23.90 27.67 28.93 30.50 30.82 31.13
1982 336 4.46 7.14 10.42 12.80 17.26 17.86 18.75 20.24 22.32 26.49 27.68 29.17 29.46 29.76 29.76
1983 336 2.98 5.65 8.93 14.29 15.48 18.15 19.94 22.02 27.08 28.27 29.76 30.06 30.36 30.36 30.65
1984 363 3.31 7.44 14.05 15.43 18.46 20.94 23.69 27.82 29.20 30.85 31.13 31.40 31.40 31.68 31.68
1985 412 4.37 11.41 13.35 16.99 19.90 22.82 27.18 28.40 29.61 29.85 30.34 30.34 30.34 30.34 31.07
1986 522 5.75 7.85 11.49 14.18 17.82 22.22 23.56 25.10 25.67 26.05 26.44 26.82 27.01 27.59 28.16
1987 671 2.83 6.86 10.73 15.35 21.16 23.40 25.34 25.93 26.68 27.12 27.42 27.57 28.17 29.21 30.70
1988 747 3.88 8.03 13.79 21.29 23.43 25.30 25.84 26.91 27.31 27.84 28.38 29.05 30.66 32.13 33.47
1989 744 4.70 11.83 21.37 23.66 25.67 26.48 27.42 27.82 28.63 29.70 30.24 31.72 33.06 34.54 35.22
1990 690 8.12 18.12 21.59 23.62 24.49 25.65 25.94 27.10 28.41 28.99 30.58 32.17 34.20 35.07 35.36
1991 588 11.05 15.99 17.52 18.54 20.07 20.41 21.60 22.96 23.47 25.00 26.87 29.42 30.44 30.95 31.29
1992 523 6.12 8.03 9.18 11.28 11.85 13.19 14.72 15.30 17.40 19.89 22.94 23.90 24.47 24.67 24.67
1993 558 2.51 4.30 7.71 8.60 10.04 11.29 12.01 14.16 17.03 19.89 20.97 21.68 22.04 22.58 22.94
1994 708 2.12 5.93 7.34 8.76 10.17 12.15 15.11 18.50 21.33 22.46 23.16 23.59 24.15 24.44 25.56
1995 820 3.54 5.24 6.83 8.54 10.73 13.66 18.41 21.83 23.41 24.15 24.76 25.24 25.49 26.34 28.54
1996 883 1.81 3.74 6.23 9.29 12.12 16.53 20.61 22.54 23.33 24.01 24.46 24.92 25.82 27.75 28.20
1997 994 2.01 5.23 9.05 13.18 18.61 23.04 25.45 26.26 26.96 27.67 28.17 29.28 31.29 31.49 31.59
1998 1,307 3.67 9.18 14.61 21.65 26.40 29.38 30.53 31.29 32.13 32.59 33.59 35.42 35.58 35.65 35.73
1999 1,651 5.57 11.93 20.35 26.59 29.92 31.19 31.98 32.71 33.13 34.40 36.40 36.77 36.89 37.01 37.19
2000 1,747 6.24 15.28 22.21 25.99 27.70 28.68 29.42 29.99 31.37 33.94 34.29 34.46 34.63 34.97 35.03
2001 1,748 9.90 17.91 22.54 24.20 25.34 26.09 26.66 28.03 30.78 31.24 31.41 31.58 31.98 32.09 32.44
2002 1,673 9.50 14.64 16.68 17.75 18.65 19.25 20.92 24.27 24.81 25.04 25.28 25.82 25.94 26.30 26.90
2003 1,755 5.07 7.07 8.26 9.29 9.86 11.62 15.33 16.01 16.30 16.92 17.55 17.72 18.06 18.63 19.32
2004 1,875 2.03 3.36 4.37 5.01 6.93 11.20 12.00 12.43 13.07 13.65 13.87 14.24 14.83 15.52 15.84
2005 2,056 1.51 2.53 3.40 5.64 10.65 11.77 12.40 13.13 13.76 14.11 14.69 15.32 15.95 16.25 16.83
2006 2,188 1.19 2.19 5.07 11.20 12.61 13.53 14.67 15.45 15.81 16.50 17.37 17.96 18.33 18.92 19.65
2007 2,300 0.91 4.30 11.65 13.52 14.52 15.87 16.83 17.26 18.17 19.13 19.74 20.04 20.65 21.48
2008 2,399 3.71 12.21 14.59 15.51 17.13 18.01 18.63 19.67 20.63 21.26 21.76 22.34 23.51
2009 2,252 9.95 12.66 13.72 15.50 16.47 17.18 18.29 19.49 20.20 20.74 21.27 22.51
2010 2,116 3.02 4.73 6.81 7.94 8.93 10.11 11.81 12.71 13.23 13.89 15.50
2011 2,381 1.85 4.49 6.13 7.27 9.07 11.09 12.01 12.52 13.10 14.78
2012 2,550 2.59 4.71 5.84 7.84 10.16 11.37 12.12 12.78 14.51
2013 2,773 2.31 3.61 6.17 9.02 10.49 11.25 11.94 13.74
2014 3,118 1.44 4.11 7.28 9.08 10.13 11.03 13.15
2015 3,383 2.78 6.65 8.63 9.93 11.29 13.95
2016 3,375 4.24 6.34 7.88 9.27 12.27
2017 3,365 2.47 4.34 6.12 9.81
2018 3,431 2.10 4.28 8.60
2019 3,626 2.54 7.47
2020 3,605 5.49
Summary satistics
Marginal average 3.71 3.61 3.23 2.73 2.30 1.94 1.65 1.40 1.27 1.18 1.02 0.86 0.82 0.73 0.72
Cumulative average 3.71 7.19 10.18 12.63 14.64 16.30 17.68 18.83 19.86 20.81 21.61 22.29 22.93 23.49 24.04
Standard deviation 2.63 4.33 5.40 5.98 6.24 6.22 6.19 6.21 6.19 6.10 5.96 5.87 5.98 6.01 5.89
Median 3.17 6.65 8.99 12.80 15.00 17.86 18.81 21.83 23.37 25.00 26.65 27.57 28.82 29.76 30.68
Minimum 0.63 2.19 3.40 5.01 6.93 10.11 11.81 12.43 13.07 13.65 13.87 14.24 14.83 15.52 15.84
Maximum 11.05 18.12 22.54 26.59 29.92 31.19 31.98 32.71 33.13 34.40 36.40 36.77 36.89 37.01 37.19
Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 33

Average Multiyear Global Corporate Transition Matrix (1981-2020) (%)
--One-year transition rates--
From/to AAA AA A BBB BB B CCC/C D NR
AAA 87.06 9.06 0.53 0.05 0.11 0.03 0.05 0.00 3.11
(7.18) (7.22) (0.82) (0.24) (0.28) (0.17) (0.34) (0.00) (2.43)
AA 0.48 87.23 7.77 0.47 0.05 0.06 0.02 0.02 3.89
(0.53) (5.17) (4.14) (0.68) (0.19) (0.20) (0.06) (0.07) (1.81)
A 0.03 1.60 88.58 5.00 0.26 0.11 0.02 0.05 4.35
(0.09) (1.05) (3.74) (2.15) (0.38) (0.24) (0.06) (0.10) (1.68)
BBB 0.00 0.09 3.25 86.49 3.56 0.43 0.10 0.16 5.92
(0.03) (0.15) (1.62) (3.90) (1.57) (0.65) (0.21) (0.24) (1.54)
BB 0.01 0.03 0.11 4.55 77.82 6.80 0.55 0.63 9.51
(0.05) (0.08) (0.24) (2.01) (4.38) (3.09) (0.70) (0.81) (2.17)
B 0.00 0.02 0.07 0.15 4.54 74.60 4.96 3.34 12.33
(0.00) (0.08) (0.19) (0.21) (2.21) (3.97) (2.74) (3.04) (2.16)
CCC/C 0.00 0.00 0.10 0.17 0.55 12.47 43.11 28.30 15.31
(0.00) (0.00) (0.40) (0.62) (0.88) (7.45) (8.48) (11.27) (4.97)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 34

Average Multiyear Global Corporate Transition Matrix (1981-2020) (%)
--Two-year transition rates--
From/to AAA AA A BBB BB B CCC/C D NR
AAA 75.71 16.19 1.43 0.11 0.24 0.05 0.11 0.03 6.15
(10.15) (10.60) (1.47) (0.30) (0.46) (0.23) (0.41) (0.17) (4.24)
AA 0.85 76.31 13.72 1.20 0.18 0.13 0.02 0.06 7.54
(0.70) (8.14) (5.90) (1.11) (0.33) (0.28) (0.06) (0.12) (2.90)
A 0.04 2.89 78.62 8.69 0.68 0.25 0.04 0.13 8.66
(0.07) (1.71) (5.88) (2.90) (0.77) (0.40) (0.10) (0.19) (2.66)
BBB 0.02 0.16 6.03 75.29 5.62 0.97 0.19 0.44 11.27
(0.07) (0.23) (2.45) (6.19) (1.99) (1.06) (0.29) (0.62) (2.51)
BB 0.01 0.04 0.26 8.17 61.04 9.98 1.00 1.92 17.58
(0.05) (0.10) (0.48) (2.97) (6.41) (2.73) (0.88) (2.14) (2.99)
B 0.00 0.03 0.12 0.36 7.73 55.84 5.67 7.79 22.45
(0.00) (0.10) (0.28) (0.43) (3.29) (4.93) (2.46) (5.51) (3.57)
CCC/C 0.00 0.00 0.13 0.45 1.01 16.70 20.54 37.29 23.88
(0.00) (0.00) (0.45) (1.12) (1.10) (7.36) (7.35) (11.95) (6.85)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 35

Average Multiyear Global Corporate Transition Matrix (1981-2020) (%)
--Three-year transition rates--
From/to AAA AA A BBB BB B CCC/C D NR
AAA 65.47 22.20 2.33 0.32 0.26 0.08 0.11 0.13 9.10
(11.52) (12.26) (1.74) (0.76) (0.53) (0.29) (0.41) (0.37) (5.25)
AA 1.13 67.07 18.13 1.95 0.33 0.21 0.03 0.12 11.04
(0.85) (9.58) (6.16) (1.42) (0.50) (0.44) (0.07) (0.18) (4.01)
A 0.05 3.78 70.27 11.24 1.14 0.39 0.08 0.23 12.81
(0.09) (2.15) (7.01) (2.93) (1.01) (0.58) (0.13) (0.27) (3.41)
BBB 0.02 0.25 8.07 66.24 6.80 1.47 0.26 0.77 16.13
(0.06) (0.38) (2.87) (7.33) (2.00) (1.27) (0.35) (0.91) (3.26)
BB 0.01 0.05 0.44 10.63 48.60 11.27 1.18 3.48 24.33
(0.05) (0.12) (0.67) (3.31) (7.40) (2.65) (0.87) (3.41) (3.63)
B 0.00 0.02 0.17 0.66 9.42 42.14 5.11 11.77 30.70
(0.05) (0.10) (0.40) (0.75) (3.44) (5.21) (2.04) (6.95) (4.65)
CCC/C 0.00 0.00 0.11 0.53 1.54 16.93 9.84 41.76 29.29
(0.00) (0.00) (0.47) (1.14) (1.56) (6.67) (5.73) (11.61) (8.08)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 36

Average Multiyear Global Corporate Transition Matrix (1981-2020) (%)
--Five-year transition rates--
From/to AAA AA A BBB BB B CCC/C D NR
AAA 49.49 28.78 4.77 0.80 0.35 0.16 0.08 0.35 15.23
(11.81) (13.44) (2.73) (1.54) (0.54) (0.40) (0.27) (0.60) (6.55)
AA 1.41 52.27 24.08 3.43 0.54 0.36 0.04 0.31 17.56
(0.97) (9.51) (5.17) (1.84) (0.63) (0.58) (0.10) (0.38) (4.71)
A 0.07 4.84 57.28 14.50 1.86 0.62 0.13 0.48 20.22
(0.10) (2.36) (7.95) (2.57) (1.20) (0.82) (0.17) (0.44) (4.05)
BBB 0.02 0.39 10.28 53.18 7.56 2.01 0.35 1.64 24.57
(0.07) (0.52) (2.91) (7.72) (1.56) (1.42) (0.37) (1.43) (4.24)
BB 0.01 0.07 0.89 12.47 33.03 11.12 1.18 6.79 34.44
(0.05) (0.16) (0.95) (3.01) (7.39) (2.00) (0.89) (4.87) (4.00)
B 0.01 0.02 0.21 1.33 9.80 25.59 3.15 17.82 42.06
(0.10) (0.08) (0.51) (1.17) (2.82) (4.81) (1.11) (8.04) (5.54)
CCC/C 0.00 0.00 0.10 0.67 2.59 12.55 2.75 46.10 35.25
(0.00) (0.00) (0.45) (1.64) (2.02) (4.61) (3.47) (11.51) (8.80)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 37

Average Multiyear Global Corporate Transition Matrix (1981-2020) (%)
--Seven-year transition rates--
From/to AAA AA A BBB BB B CCC/C D NR
AAA 37.98 32.58 6.82 1.48 0.35 0.19 0.11 0.51 19.98
(11.01) (13.91) (3.01) (1.92) (0.55) (0.42) (0.31) (0.74) (6.88)
AA 1.46 41.19 27.41 4.59 0.72 0.36 0.03 0.52 23.72
(0.96) (7.65) (4.25) (1.83) (0.62) (0.50) (0.08) (0.53) (4.63)
A 0.06 5.23 47.92 16.24 2.35 0.76 0.13 0.83 26.48
(0.11) (1.87) (7.46) (1.90) (1.29) (0.87) (0.17) (0.58) (4.00)
BBB 0.03 0.50 11.16 44.49 7.31 2.20 0.35 2.51 31.45
(0.10) (0.58) (2.62) (7.29) (0.89) (1.17) (0.32) (1.78) (4.48)
BB 0.00 0.08 1.25 12.73 24.21 9.91 0.95 9.78 41.10
(0.00) (0.17) (1.04) (3.02) (6.76) (2.05) (0.67) (5.59) (3.53)
B 0.00 0.02 0.28 1.87 8.81 16.99 1.82 21.85 48.36
(0.07) (0.08) (0.55) (1.39) (2.05) (4.31) (0.63) (8.18) (5.25)
CCC/C 0.00 0.00 0.18 0.87 3.47 7.70 1.77 48.05 37.97
(0.00) (0.00) (0.55) (1.95) (1.97) (3.57) (2.37) (11.28) (9.12)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 38

Average Multiyear Global Corporate Transition Matrix (1981-2020) (%)
--10-year transition rates--
From/to AAA AA A BBB BB B CCC/C D NR
AAA 24.86 34.68 9.35 2.79 0.16 0.19 0.05 0.71 27.19
(9.13) (14.22) (3.10) (2.28) (0.33) (0.47) (0.22) (0.76) (6.84)
AA 1.20 28.88 29.44 6.56 0.92 0.40 0.02 0.77 31.80
(0.80) (4.30) (3.39) (1.81) (0.72) (0.35) (0.08) (0.60) (3.72)
A 0.09 5.21 37.55 17.34 2.63 0.90 0.12 1.39 34.77
(0.16) (1.49) (5.94) (2.03) (0.88) (0.63) (0.16) (0.84) (4.19)
BBB 0.02 0.61 11.33 35.30 6.65 2.19 0.27 3.86 39.77
(0.08) (0.65) (2.96) (6.64) (1.14) (1.06) (0.22) (2.23) (4.24)
BB 0.01 0.07 1.63 11.50 16.59 7.98 0.65 13.71 47.87
(0.07) (0.13) (1.03) (2.75) (5.11) (2.13) (0.37) (6.24) (2.80)
B 0.00 0.03 0.34 2.35 7.24 9.73 0.99 26.88 52.45
(0.00) (0.06) (0.58) (1.63) (1.80) (3.04) (0.59) (8.47) (4.80)
CCC/C 0.00 0.00 0.13 0.79 3.80 3.75 0.39 51.35 39.79
(0.00) (0.00) (0.52) (0.89) (2.45) (2.96) (0.65) (11.52) (9.26)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 39

Average Multiyear Global Corporate Transition Matrix (1981-2020) (%)
--15-year transition rates--
From/to AAA AA A BBB BB B CCC/C D NR
AAA 12.40 32.33 14.34 2.83 0.58 0.40 0.03 0.94 36.16
(6.72) (10.99) (3.22) (1.00) (0.44) (0.58) (0.16) (0.80) (4.47)
AA 0.85 17.39 28.14 8.90 1.13 0.59 0.03 1.13 41.85
(0.78) (3.40) (3.65) (2.07) (0.76) (0.45) (0.09) (0.54) (3.31)
A 0.12 4.11 26.50 17.55 2.86 1.02 0.12 2.37 45.35
(0.19) (1.40) (4.12) (1.65) (0.99) (0.53) (0.11) (0.93) (3.89)
BBB 0.00 0.70 9.94 25.16 5.42 2.09 0.22 6.22 50.25
(0.00) (0.46) (3.14) (3.31) (0.68) (1.04) (0.19) (2.43) (2.69)
BB 0.00 0.12 2.00 9.41 9.72 5.42 0.45 18.92 53.96
(0.00) (0.18) (1.00) (2.36) (2.88) (1.64) (0.35) (5.88) (2.81)
B 0.00 0.07 0.53 2.72 4.17 4.60 0.47 32.51 54.93
(0.00) (0.09) (0.44) (1.43) (1.14) (1.53) (0.34) (8.81) (6.70)
CCC/C 0.00 0.00 0.58 1.10 2.71 1.42 0.19 53.13 40.87
(0.00) (0.00) (1.32) (1.20) (2.31) (1.03) (0.73) (12.05) (11.34)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 40

Average Multiyear Global Corporate Transition Matrix (1981-2020) (%)
--20-year transition rates--
From/to AAA AA A BBB BB B CCC/C D NR
AAA 5.05 27.33 17.65 3.70 0.85 0.75 0.04 1.25 43.38
(3.53) (7.86) (4.63) (1.48) (0.45) (0.69) (0.15) (0.92) (4.84)
AA 0.58 9.86 24.16 11.10 1.33 0.73 0.06 1.67 50.51
(0.65) (1.91) (3.88) (2.14) (0.59) (0.49) (0.14) (0.92) (1.93)
A 0.11 2.56 19.43 15.78 2.86 1.28 0.17 3.74 54.06
(0.18) (0.93) (2.71) (1.01) (0.85) (0.71) (0.15) (1.23) (2.26)
BBB 0.00 0.63 7.44 18.77 4.31 1.71 0.14 9.27 57.73
(0.00) (0.31) (1.27) (1.31) (0.78) (0.74) (0.19) (1.58) (2.13)
BB 0.00 0.16 1.65 7.00 5.52 3.93 0.43 25.19 56.12
(0.00) (0.23) (0.51) (1.42) (1.90) (1.07) (0.38) (3.14) (2.95)
B 0.00 0.12 0.42 2.12 2.43 2.41 0.26 39.65 52.59
(0.00) (0.16) (0.22) (1.08) (0.81) (0.87) (0.23) (5.02) (4.53)
CCC/C 0.00 0.00 0.23 1.29 2.23 0.35 0.00 59.20 36.69
(0.00) (0.00) (0.81) (1.26) (2.91) (0.74) (0.00) (8.30) (9.22)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 41

Average Multiyear Global Corporate Transition Matrices (1981-2020) – All Financials (%)
From/to AAA AA A BBB BB B CCC/C D NR
One-year
AAA 87.07 9.51 0.34 0.08 0.08 0.04 0.08 0.00 2.79
(10.09) (9.83) (0.98) (0.37) (0.38) (0.24) (0.48) (0.00) (2.63)
AA 0.45 87.49 7.79 0.33 0.02 0.02 0.03 0.03 3.83
(0.56) (6.31) (5.57) (0.63) (0.08) (0.07) (0.16) (0.11) (1.89)
A 0.02 2.07 89.10 3.61 0.18 0.06 0.01 0.08 4.88
(0.13) (1.70) (4.10) (2.54) (0.45) (0.15) (0.04) (0.18) (2.00)
BBB 0.00 0.19 4.27 84.60 3.16 0.37 0.11 0.23 7.07
(0.00) (0.50) (2.94) (4.88) (2.40) (0.77) (0.26) (0.51) (2.01)
BB 0.00 0.08 0.16 5.80 76.77 4.97 0.65 0.61 10.95
(0.00) (0.27) (0.67) (4.08) (7.09) (3.13) (1.58) (1.21) (4.88)
B 0.00 0.03 0.08 0.36 6.21 76.32 3.15 2.59 11.26
(0.00) (0.20) (0.60) (0.81) (4.42) (7.53) (3.46) (3.43) (3.94)
CCC/C 0.00 0.00 0.00 0.00 1.26 17.19 44.44 18.03 19.08
(0.00) (0.00) (0.00) (0.00) (3.99) (12.11) (18.80) (16.56) (11.98)
Three-year
AAA 64.92 24.03 1.61 0.34 0.21 0.08 0.17 0.21 8.43
(16.40) (16.60) (2.22) (1.13) (0.57) (0.35) (0.59) (0.55) (5.96)
AA 1.07 67.61 18.12 1.59 0.17 0.15 0.03 0.18 11.07
(1.01) (11.23) (8.34) (1.64) (0.33) (0.35) (0.10) (0.29) (4.22)
A 0.05 4.90 71.63 7.49 0.94 0.21 0.09 0.35 14.33
(0.17) (3.46) (7.78) (2.81) (1.24) (0.45) (0.20) (0.51) (4.68)
BBB 0.00 0.53 10.50 62.12 5.14 0.92 0.29 1.06 19.44
(0.00) (1.10) (5.96) (7.66) (2.79) (0.98) (0.62) (1.35) (4.19)
BB 0.00 0.12 0.69 13.37 46.36 7.66 0.81 2.58 28.42
(0.00) (0.37) (1.50) (6.05) (9.81) (3.84) (1.50) (3.76) (6.87)
B 0.00 0.00 0.29 1.54 12.85 47.77 3.20 7.82 26.53
(0.00) (0.00) (0.92) (2.42) (6.58) (10.38) (2.82) (6.86) (6.15)
CCC/C 0.00 0.00 0.22 0.43 1.52 25.76 9.96 25.11 37.01
(0.00) (0.00) (3.33) (2.69) (3.67) (15.09) (10.03) (16.34) (15.44)
10-year
AAA 22.08 38.25 8.84 2.11 0.13 0.30 0.09 0.99 27.21
(12.21) (17.01) (5.11) (2.69) (0.38) (0.67) (0.32) (1.22) (8.82)
AA 1.02 31.29 29.24 4.63 0.38 0.35 0.03 1.13 31.92
(0.94) (6.07) (5.82) (2.25) (0.38) (0.41) (0.08) (1.17) (5.06)
A 0.12 7.39 39.76 9.32 1.86 0.50 0.13 1.68 39.24
(0.36) (2.89) (5.84) (2.65) (1.17) (0.43) (0.23) (1.14) (5.62)
BBB 0.00 1.50 13.66 28.14 3.49 1.07 0.42 4.34 47.38
(0.00) (2.81) (3.39) (6.31) (1.68) (0.50) (0.61) (2.14) (5.26)
BB 0.00 0.08 3.08 14.41 12.32 5.92 0.08 9.08 55.03
(0.00) (0.34) (3.49) (4.57) (7.40) (3.21) (0.26) (8.43) (6.99)
B 0.00 0.00 1.24 5.20 9.42 14.56 0.56 15.18 53.84
(0.00) (0.00) (2.49) (5.56) (4.31) (7.53) (1.69) (10.47) (10.57)
CCC/C 0.00 0.00 0.33 1.00 4.67 8.00 0.33 31.33 54.33
(0.00) (0.00) (4.14) (2.29) (6.21) (9.01) (1.38) (18.89) (16.55)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 42

Average Multiyear Global Corporate Transition Matrices (1981-2020) – Insurance (%)
From/to AAA AA A BBB BB B CCC/C D NR
One-year
AAA 87.68 10.13 0.28 0.00 0.07 0.07 0.14 0.00 1.63
(12.08) (11.60) (1.32) (0.00) (0.32) (0.43) (0.87) (0.00) (2.21)
AA 0.55 87.83 7.21 0.34 0.04 0.04 0.06 0.04 3.89
(1.00) (6.51) (5.59) (0.92) (0.15) (0.14) (0.47) (0.14) (2.22)
A 0.01 2.27 90.22 2.80 0.17 0.07 0.01 0.10 4.35
(0.06) (2.29) (4.50) (2.52) (0.50) (0.24) (0.06) (0.25) (1.86)
BBB 0.00 0.14 5.65 83.00 2.60 0.33 0.28 0.19 7.81
(0.00) (0.70) (3.37) (4.83) (2.63) (1.01) (0.75) (0.68) (3.03)
BB 0.00 0.10 0.49 8.25 73.28 3.93 1.08 0.59 12.28
(0.00) (0.84) (2.06) (8.87) (11.95) (4.33) (3.05) (2.10) (7.02)
B 0.00 0.14 0.29 0.72 6.34 75.22 2.16 2.02 13.11
(0.00) (1.06) (2.44) (2.71) (7.83) (11.84) (3.97) (4.66) (6.36)
CCC/C 0.00 0.00 0.00 0.00 3.53 12.94 40.00 23.53 20.00
(0.00) (0.00) (0.00) (0.00) (11.55) (21.97) (31.50) (27.74) (28.06)
Three-year
AAA 65.65 26.13 1.84 0.00 0.14 0.14 0.28 0.35 5.45
(18.41) (17.54) (2.76) (0.00) (0.55) (0.62) (1.03) (0.89) (5.81)
AA 1.26 69.03 16.37 1.60 0.18 0.22 0.07 0.27 11.00
(2.02) (11.22) (7.08) (2.12) (0.49) (0.57) (0.19) (0.43) (4.11)
A 0.05 5.19 74.83 5.37 0.64 0.13 0.11 0.43 13.24
(0.15) (4.67) (9.04) (3.14) (1.24) (0.64) (0.24) (0.93) (4.23)
BBB 0.00 0.45 13.59 59.78 3.79 0.84 0.39 0.99 20.17
(0.00) (1.52) (5.64) (7.17) (3.08) (0.96) (1.13) (1.78) (4.17)
BB 0.00 0.11 1.81 16.86 41.62 5.23 1.28 2.24 30.84
(0.00) (0.88) (4.10) (11.30) (14.05) (4.45) (3.98) (4.81) (10.63)
B 0.00 0.00 1.57 3.13 12.52 45.22 1.39 6.61 29.57
(0.00) (0.00) (4.92) (7.44) (10.91) (13.17) (2.41) (8.37) (10.95)
CCC/C 0.00 0.00 1.19 2.38 4.76 17.86 14.29 29.76 29.76
(0.00) (0.00) (11.04) (10.84) (10.40) (22.65) (18.59) (28.88) (30.15)
10-year
AAA 22.68 41.32 9.57 1.63 0.14 0.50 0.14 1.63 22.40
(14.45) (16.21) (6.81) (2.68) (0.48) (1.17) (0.55) (1.81) (10.68)
AA 1.26 33.78 27.90 3.55 0.56 0.56 0.06 1.74 30.59
(1.74) (6.56) (5.58) (2.46) (0.72) (0.74) (0.15) (1.19) (5.21)
A 0.19 7.62 46.15 6.23 1.31 0.35 0.29 1.97 35.90
(1.18) (4.74) (10.38) (2.94) (1.76) (0.39) (0.48) (1.79) (6.48)
BBB 0.00 1.54 18.16 29.99 2.11 0.58 0.19 3.46 43.97
(0.00) (4.15) (6.30) (4.70) (2.28) (0.42) (0.67) (4.38) (4.09)
BB 0.00 0.34 5.38 16.30 10.76 3.70 0.00 11.43 52.10
(0.00) (1.43) (7.13) (7.78) (6.94) (3.67) (0.00) (15.02) (17.17)
B 0.00 0.00 4.84 12.11 9.34 10.03 0.69 15.57 47.40
(0.00) (0.00) (9.67) (16.80) (11.16) (8.79) (5.13) (11.92) (18.80)
CCC/C 0.00 0.00 1.45 0.00 4.35 0.00 0.00 44.93 49.28
(0.00) (0.00) (12.23) (0.00) (10.15) (0.00) (0.00) (30.97) (29.74)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 43

Average Multiyear Global Corporate Transition Matrices (1981-2020) – Financial Institutions (%)
From/to AAA AA A BBB BB B CCC/C D NR
One-year
AAA 86.16 8.60 0.42 0.21 0.10 0.00 0.00 0.00 4.51
(13.38) (12.88) (1.29) (0.94) (0.79) (0.00) (0.00) (0.00) (4.46)
AA 0.35 87.13 8.40 0.33 0.00 0.00 0.00 0.02 3.76
(0.63) (7.62) (7.08) (0.71) (0.00) (0.00) (0.00) (0.10) (2.30)
A 0.03 1.89 88.11 4.32 0.19 0.05 0.01 0.06 5.34
(0.20) (2.00) (5.43) (3.64) (0.65) (0.14) (0.06) (0.23) (2.90)
BBB 0.00 0.22 3.63 85.33 3.42 0.38 0.04 0.24 6.73
(0.00) (0.64) (3.35) (5.99) (3.11) (0.99) (0.20) (0.68) (2.35)
BB 0.00 0.08 0.08 5.16 77.68 5.24 0.54 0.62 10.60
(0.00) (0.29) (0.63) (3.96) (7.35) (3.92) (1.48) (1.33) (5.67)
B 0.00 0.00 0.03 0.27 6.18 76.58 3.38 2.73 10.82
(0.00) (0.00) (0.50) (0.85) (4.68) (7.84) (4.17) (4.15) (4.11)
CCC/C 0.00 0.00 0.00 0.00 0.77 18.11 45.41 16.84 18.88
(0.00) (0.00) (0.00) (0.00) (3.66) (12.56) (19.30) (15.52) (11.85)
Three-year
AAA 63.82 20.89 1.27 0.84 0.32 0.00 0.00 0.00 12.87
(18.89) (19.26) (3.00) (2.12) (1.04) (0.00) (0.00) (0.00) (7.60)
AA 0.87 66.14 19.94 1.58 0.16 0.07 0.00 0.09 11.15
(0.93) (13.06) (10.47) (1.99) (0.52) (0.37) (0.00) (0.25) (4.93)
A 0.05 4.65 68.90 9.31 1.20 0.27 0.08 0.28 15.26
(0.25) (3.91) (8.58) (3.91) (1.94) (0.51) (0.25) (0.58) (5.92)
BBB 0.00 0.56 9.01 63.23 5.79 0.96 0.24 1.09 19.10
(0.00) (1.16) (6.64) (9.16) (4.10) (1.33) (0.75) (1.82) (5.39)
BB 0.00 0.12 0.38 12.41 47.67 8.33 0.67 2.67 27.75
(0.00) (0.47) (1.19) (5.82) (10.11) (4.41) (1.67) (4.12) (8.12)
B 0.00 0.00 0.00 1.18 12.92 48.35 3.61 8.09 25.84
(0.00) (0.00) (0.00) (1.97) (7.47) (11.09) (3.60) (8.21) (7.30)
CCC/C 0.00 0.00 0.00 0.00 0.79 27.51 8.99 24.07 38.62
(0.00) (0.00) (0.00) (0.00) (3.73) (15.90) (12.18) (15.78) (16.70)
10-year
AAA 21.15 33.48 7.71 2.86 0.11 0.00 0.00 0.00 34.69
(13.79) (20.42) (5.43) (4.70) (0.58) (0.00) (0.00) (0.00) (12.18)
AA 0.78 28.81 30.57 5.71 0.20 0.14 0.00 0.53 33.26
(0.93) (8.82) (7.72) (3.49) (0.49) (0.29) (0.00) (1.75) (6.75)
A 0.07 7.22 35.18 11.53 2.26 0.61 0.01 1.47 41.63
(0.23) (3.54) (4.74) (5.45) (2.13) (0.63) (0.07) (1.32) (6.36)
BBB 0.00 1.49 11.48 27.24 4.16 1.30 0.53 4.77 49.02
(0.00) (2.66) (4.04) (8.14) (2.80) (0.75) (0.90) (2.33) (7.25)
BB 0.00 0.00 2.37 13.83 12.80 6.60 0.10 8.36 55.93
(0.00) (0.00) (2.98) (5.00) (9.44) (3.96) (0.32) (7.46) (9.81)
B 0.00 0.00 0.45 3.70 9.43 15.55 0.53 15.09 55.25
(0.00) (0.00) (1.47) (3.94) (4.84) (8.24) (0.88) (13.14) (10.74)
CCC/C 0.00 0.00 0.00 1.30 4.76 10.39 0.43 27.27 55.84
(0.00) (0.00) (0.00) (3.02) (7.19) (10.98) (1.98) (18.34) (15.55)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 44

Average Multiyear Global Corporate Transition Matrices (1981-2020) – Nonfinancials (%)
From/to AAA AA A BBB BB B CCC/C D NR
One-year
AAA 87.05 8.33 0.84 0.00 0.14 0.00 0.00 0.00 3.64
(8.61) (7.81) (1.68) (0.00) (0.47) (0.00) (0.00) (0.00) (4.12)
AA 0.53 86.88 7.73 0.66 0.09 0.12 0.00 0.00 3.98
(0.76) (5.70) (3.83) (1.01) (0.31) (0.35) (0.00) (0.00) (2.56)
A 0.03 1.19 88.12 6.24 0.34 0.16 0.02 0.03 3.88
(0.09) (1.23) (4.21) (2.45) (0.49) (0.35) (0.09) (0.08) (2.18)
BBB 0.01 0.05 2.85 87.23 3.71 0.46 0.09 0.13 5.48
(0.04) (0.12) (1.71) (4.43) (1.80) (0.70) (0.22) (0.26) (1.83)
BB 0.01 0.01 0.10 4.28 78.05 7.19 0.53 0.63 9.20
(0.06) (0.09) (0.24) (1.97) (4.64) (3.42) (0.62) (0.85) (2.17)
B 0.00 0.02 0.07 0.13 4.34 74.40 5.17 3.43 12.45
(0.00) (0.08) (0.20) (0.20) (2.19) (3.89) (2.95) (3.15) (2.35)
CCC/C 0.00 0.00 0.11 0.20 0.45 11.83 42.93 29.68 14.80
(0.00) (0.00) (0.46) (0.69) (0.81) (7.77) (8.71) (11.57) (5.03)
Three-year
AAA 66.38 19.17 3.52 0.28 0.35 0.07 0.00 0.00 10.22
(11.56) (11.01) (3.22) (1.30) (0.86) (0.32) (0.00) (0.00) (7.26)
AA 1.21 66.34 18.14 2.43 0.55 0.29 0.02 0.03 11.00
(1.08) (10.05) (5.67) (2.00) (0.79) (0.59) (0.08) (0.11) (4.96)
A 0.05 2.81 69.11 14.44 1.31 0.55 0.08 0.12 11.52
(0.10) (2.45) (7.12) (3.67) (1.13) (0.78) (0.15) (0.19) (3.90)
BBB 0.02 0.14 7.15 67.80 7.43 1.68 0.25 0.66 14.87
(0.07) (0.27) (3.12) (8.34) (2.21) (1.48) (0.34) (1.01) (3.84)
BB 0.01 0.03 0.39 10.06 49.07 12.03 1.26 3.67 23.48
(0.06) (0.13) (0.65) (3.38) (7.77) (3.13) (0.86) (3.56) (3.90)
B 0.00 0.03 0.16 0.57 9.03 41.51 5.32 12.22 31.17
(0.05) (0.11) (0.41) (0.71) (3.37) (4.91) (2.24) (7.16) (5.07)
CCC/C 0.00 0.00 0.10 0.55 1.55 15.61 9.82 44.24 28.14
(0.00) (0.00) (0.37) (1.12) (1.70) (6.56) (6.17) (12.16) (8.11)
10-year
AAA 29.69 28.50 10.25 3.96 0.22 0.00 0.00 0.22 27.15
(9.51) (10.18) (4.39) (3.59) (0.61) (0.00) (0.00) (0.55) (9.24)
AA 1.41 25.97 29.69 8.89 1.57 0.45 0.02 0.34 31.66
(1.05) (8.23) (3.66) (3.83) (1.16) (0.53) (0.10) (0.53) (5.23)
A 0.07 3.64 35.96 23.12 3.17 1.19 0.12 1.19 31.55
(0.15) (2.35) (6.07) (3.96) (1.19) (0.82) (0.18) (0.94) (4.29)
BBB 0.02 0.30 10.54 37.73 7.72 2.58 0.21 3.70 37.19
(0.10) (0.31) (3.90) (7.75) (1.38) (1.38) (0.22) (2.52) (4.96)
BB 0.01 0.06 1.38 10.99 17.35 8.34 0.75 14.53 46.60
(0.08) (0.14) (0.97) (3.34) (5.13) (2.46) (0.41) (6.34) (3.27)
B 0.00 0.03 0.25 2.08 7.03 9.27 1.03 27.99 52.32
(0.00) (0.07) (0.59) (1.50) (1.83) (2.71) (0.61) (8.47) (4.93)
CCC/C 0.00 0.00 0.10 0.75 3.66 3.11 0.40 54.37 37.60
(0.00) (0.00) (0.36) (0.98) (2.53) (2.56) (0.70) (11.56) (9.40)
Note: Numbers in parentheses are weighted standard deviations, weighted by the issuer base. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Appendix II: Gini Methodology

We utilize the Lorenz curve, a graphical representation of the proportionality of a distribution, as one measure of ratings performance, and we summarize this via the Gini coefficient. For this study, the Lorenz curve is plotted with the x-axis showing the cumulative share of issuers, arranged by rating, while the y-axis represents the cumulative share of defaulters, also arranged by rating. For both axes of the Lorenz curve, the observations are ordered from the low end of the ratings scale ('CCC'/'C') to the high end ('AAA').

As an example, if 'CCC'/'C' rated entities made up 10% of the total population of issuers at the start of the time frame examined (x-axis) and 50% of the defaulters (y-axis), then the coordinate (10, 50) would be the first point on the curve. If S&P Global Ratings' corporate ratings only randomly approximated default risk, the Lorenz curve would fall along the diagonal. Its Gini coefficient--which is a summary statistic of the Lorenz curve--would thus be zero. If corporate ratings were perfectly rank ordered so that all defaults occurred only among the lowest-rated entities, the curve would capture all of the area above the diagonal on the graph (the ideal curve), and its Gini coefficient would be 1 (see chart 31).

The procedure for calculating the Gini coefficients is illustrated in chart 31: Area B is bounded by the random curve and the Lorenz curve, while area A is bounded by the Lorenz curve and the ideal curve. The Gini coefficient is defined as area B divided by the total of area A plus area B. In other words, the Gini coefficient captures the extent to which actual ratings accuracy diverges from the random scenario and aspires to the ideal scenario.

Chart 31

image

Appendix III: 2020 Defaults In Profile

In 2020, 226 companies, including 26 confidential issuers, defaulted on US$353.4 billion of debt. This appendix provides summaries of the events leading up to each default and, in some cases, events following the default. We also include the defaulting instruments for each company that S&P Global Ratings rates.

Constellis Holdings LLC
  • US$110 million floating rate first-lien bank loan due Dec. 17, 2020
  • US$872 million floating rate first-lien TL B2 bank loan due April 21, 2024
  • US$75 million floating rate revolver bank loan due April 21, 2022
  • US$215 million floating rate second-lien term bank loan due April 21, 2025

On Jan. 2, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Virginia-based aerospace and defense service provider Constellis Holdings LLC to 'SD' (selective default) from 'CC' after the company failed to make a mandatory principal payment on its $872 million first-lien term loan.

Earlier, on Dec. 30, 2019, S&P Global Ratings lowered its long-term issuer credit rating on Constellis to 'CC' from 'CCC+' after the company entered into a new $110 million priority first-lien term loan.

Later, on May 15, 2020, S&P Global Ratings withdrew its ratings at the issuer's request.

Table 45

Issuer Credit Rating--Constellis Holdings LLC
Date To
15-May-2020 NR/--/--
02-Jan-2020 SD/NM/--
30-Dec-2019 CC/Watch Neg/--
01-Nov-2019 CCC+/Negative/--
24-May-2019 B-/Negative/--
21-Dec-2018 B/Stable/--
25-Apr-2017 B+/Stable/--
10-Jun-2014 B/Watch Pos/--
10-Jun-2014 B/Stable/--
TOMS Shoes LLC
  • US$306.5 million floating rate term bank loan due Nov. 2, 2020

On Jan. 7, 2020, S&P Global Ratings lowered its long-term issuer credit rating on California-based shoes and accessories seller TOMS Shoes LLC to 'D' (default) from 'CCC' after the company restructured substantially all of its debt and its term loan lenders took ownership of the company.

On Jan. 15, 2020, S&P Global Ratings withdrew its ratings at the issuer's request.

Table 46

Issuer Credit Rating--TOMS Shoes LLC
Date To
15-Jan-2020 NR/--/--
07-Jan-2020 D/--/--
18-Jun-2019 CCC/Negative/--
15-Aug-2017 CCC+/Negative/--
30-Oct-2015 B-/Stable/--
09-Oct-2014 B/Stable/--
Moran Foods LLC (SAL Acquisition Corp.)
  • US$740 million floating rate first-lien term loan B bank loan due Dec. 5, 2023

On Jan. 9, 2019, S&P Global Ratings lowered its issuer credit rating on Missouri-based retailer Moran Foods LLC (SAL Acquisition Corp.) to 'SD' from 'CCC' after the company elected not to make an interest payment due Dec. 31, 2019, while entering into a forbearance agreement.

Table 47

Issuer Credit Rating--Moran Foods LLC (SAL Acquisition Corp.)
Date To
13-May-2020 NR/--/--
09-Jan-2020 SD/NM/--
27-Mar-2019 CCC/Negative/--
13-Aug-2018 CCC+/Negative/--
17-Nov-2017 B-/Stable/--
10-Nov-2016 B/Stable/--
Lecta S.A.
  • €225 million floating rate notes due Aug. 1, 2022
  • €375 million 6.50% notes due Aug. 1, 2023
  • €65 million floating rate first-lien guaranteed bank loan due July 27, 2022

On Jan. 13, 2020, S&P Global Ratings lowered its long-term issuer credit rating on paper manufacturer Lecta S.A. to 'SD' from 'CC' after failing to pay the interest of €3.8 million due November 2019 on its €225 million senior secured floating notes due 2020.

On Feb. 4, 2020, S&P Global Ratings lowered its ratings on Lecta S.A. to 'D' from 'SD', on completion of restructuring of its debt obligation, and subsequently withdrew the ratings.

Table 48

Issuer Credit Rating--Lecta S.A.
Date To
04-Feb-2020 NR/--/--
04-Feb-2020 D/--/--
13-Jan-2020 SD/NM/--
30-Sep-2019 CC/Watch Neg/--
10-Sep-2019 CCC-/Negative/--
14-Aug-2019 CCC/Negative/--
28-Jun-2019 B-/Negative/--
14-Jan-2014 B/Stable/--
22-Oct-2007 B+/Negative/--
29-Jan-2007 BB-/Stable/--
Qinghai Provincial Investment Group Co. Ltd.
  • US$300 million 7.25% bonds due Feb. 22, 2020
  • US$300 million 6.40% bonds due July 10, 2021
  • US$250 million 7.875% bonds due March 22, 2021
  • CNY1 billion 7.20% bonds due Dec. 20, 2022
  • CNY600 million 7.08% bonds due Oct. 8, 2022

On Jan. 14, 2020, S&P Global Ratings lowered its long-term issuer credit rating on China-based integrated aluminum producer Qinghai Provincial Investment Group Co. Ltd. (QPIG) to 'D' from 'CCC-' following the company's failure to pay interest due on Jan. 10, 2020, on its US$ 300 million bonds.

On Feb. 26, 2020, S&P Global Ratings withdrew its ratings on the issuer.

Table 49

Issuer Credit Rating--Qinghai Provincial Investment Group Co. Ltd.
Date To
26-Feb-2020 NR/--/--
14-Jan-2020 D/--/--
30-Aug-2019 CCC-/Negative/--
25-Feb-2019 CCC+/Watch Neg/--
06-Sep-2018 B+/Stable/--
06-Sep-2018 B+/Watch Neg/--
07-Feb-2017 BB-/Watch Neg/--
07-Feb-2017 BB-/Stable/--
The Krystal Co.
  • US$95 million variable rate bank loan due Aug. 4, 2020

On Jan. 19, 2020, The Krystal Co. defaulted after the company filed for bankruptcy under Chapter 11 with the Northern District of Georgia. On July 6, 2004, we withdrew our ratings on the issuer.

Table 50

Issuer Credit Rating--Krystal Co. (The)
Date To
19-Jan-2020 D/--/--
06-Jul-2004 NR/--/--
08-Nov-2001 B/Negative/--
08-Nov-2001 B/Stable/--
08-Sep-1997 B+/Watch Neg/--
08-Sep-1997 B+/Negative/--
08-Sep-1997 B+/Stable/--
Panda Green Energy Group Ltd.
  • US$350 million 8.25% notes due Jan. 25, 2020
  • US$112.308 million 8.00% notes due Jan. 20, 2022

On Jan. 21, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Panda Green Energy Group Ltd. to 'SD' from 'CC' on completion of a distressed exchange offer on its U.S. bonds due in January 2020.

On Feb. 21, 2020, S&P Global Ratings raised the issuer ratings to 'CCC-' from 'SD', after the issuer reached a settlement on the US$350 million notes via a partial exchange, and the new shareholder Beijing Energy Group Co. Ltd. can provide credit enhancements.

On May 6, 2020, S&P Global Ratings withdrew its ratings on the issuer.

Table 51

Issuer Credit Rating--Panda Green Energy Group Ltd.
Date To
06-May-2020 NR/--/--
21-Feb-2020 CCC-/Positive/--
21-Jan-2020 SD/NM/--
18-Dec-2019 CC/Watch Dev/--
12-Dec-2018 CCC+/Watch Dev/--
12-Dec-2018 CCC+/Watch Neg/--
26-Sep-2018 B/Negative/--
19-Sep-2017 B+/Stable/--
30-Oct-2016 BB-/Stable/--
Deoleo S.A.
  • €85 million variable-rate revolving credit facility bank loan due June 13, 2020
  • €55 million variable-rate second-lien bank loan due June 13, 2022
  • €460 million variable-rate bank loan due July 13, 2021

On Jan. 22, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Spanish olive oil bottler Deoleo S.A. to 'SD' from 'CC' after a majority of shareholders agreed for restructuring of its syndicated debt. The syndicated creditors will now acquire 49% of the capital of the operating business.

On July 20, 2020, S&P Global Ratings raised the issuer ratings to 'B-' from 'SD' after the issuer completed its debt restructuring, resulting in its syndicated debt falling to €242 million from €575 million and the extension of debt maturities on its €160 million senior term loan and €82 million junior term loan by five and six years, respectively.

Table 52

Issuer Credit Rating--Deoleo S.A.
Date To
20-Jul-2020 B-/Stable/--
22-Jan-2020 SD/NM/--
30-Sep-2019 CC/Watch Neg/--
13-Sep-2019 CCC-/Watch Neg/--
09-Aug-2017 CCC+/Negative/--
09-Aug-2017 CCC+/Stable/--
31-Aug-2015 B-/Stable/--
01-Aug-2014 B/Stable/--
Doncasters Group Ltd.
  • €160 million variable-rate bank loan due April 9, 2020
  • US$750 million variable-rate bank loan due April 9, 2020
  • US$290 million variable-rate (outstanding amount US$160 million) bank loan due Oct. 9, 2020

On Jan. 29, 2020, S&P Global Ratings lowered its long-term issuer credit rating on U.K.-based engineered components manufacturer and marketer Doncasters Group Ltd. after the issuer received lender support for financial restructuring. The new approval includes transfer of ownership to Alloy Topco Ltd.

On Oct. 26, 2020, S&P Global Ratings withdrew its ratings on the issuer.

Table 53

Issuer Credit Rating--Doncasters Group Ltd.
Date To
26-Oct-2020 NR/--/--
29-Jan-2020 SD/NM/--
23-May-2019 CCC-/Negative/--
29-Nov-2018 CCC+/Negative/--
03-Nov-2017 B-/Stable/--
13-Mar-2013 B/Negative/--
13-Mar-2013 B/Stable/--
Pinnacle Operating Corp.
  • US$300 million 9.00% senior secured second-lien notes due Nov. 15, 2020
  • US$336 million floating rate first-lien term bank loan due Nov. 15, 2021
  • US$210 million 9.00% notes due May 15, 2023

On Jan. 30, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Pinnacle Operating Corp. to 'SD' from 'CCC'. The company was acquired by an unrated company. The rating action followed the company's distressed exchange after repaying only a portion of amount outstanding on its 1.5-lien notes. On the same day, we withdrew the issuer ratings.

Table 54

Issuer Credit Rating--Pinnacle Operating Corp.
Date To
30-Jan-2020 NR/--/--
30-Jan-2020 SD/NM/--
06-May-2019 CCC/Negative/--
16-Mar-2017 CCC+/Stable/--
13-Mar-2017 SD/NM/--
01-Feb-2017 CC/Negative/--
23-Sep-2016 CCC/Negative/--
15-Aug-2016 CCC+/Stable/--
04-Aug-2015 B-/Stable/--
10-Apr-2013 B/Negative/--
10-Apr-2013 B/Stable/--
Commercial Barge Line Co.
  • US$1.15 billion floating rate term B bank loan due Nov. 12, 2020
  • US$640 million first-lien guaranteed senior secured asset-based revolver

On Feb. 7, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Commercial Barge Line Co. to 'D' from 'CC' after its subsidiary, American Commercial Lines Inc., filed for Chapter 11 bankruptcy with the Southern District of Texas.

Earlier in the month, on Feb. 5, 2020, American Commercial Lines Inc. announced it would execute a restructuring, after which S&P Global Ratings lowered the long-term issuer credit rating to 'CC' from 'CCC'.

Table 55

Issuer Credit Rating--Commercial Barge Line Co.
Date To
13-Mar-2020 NR/--/--
07-Feb-2020 D/--/--
04-Feb-2020 CC/Negative/--
25-Nov-2019 CCC/Negative/--
31-Jan-2018 CCC+/Negative/--
22-Feb-2017 B-/Stable/--
20-Oct-2015 B/Stable/--
25-Feb-2013 B-/Positive/--
25-Feb-2013 B-/Stable/--
01-Mar-2012 B/Stable/--
RentPath LLC

On Feb. 12, 2020, S&P Global Ratings lowered its long-term issuer credit rating on RentPath LLC to 'D' after the issuer defaulted and filed for Chapter 11 bankruptcy. Earlier, on Jan. 17, 2020, we withdrew our ratings on the issuer due to insufficient information.

Table 56

Issuer Credit Rating--RentPath LLC
Date To
12-Feb-2020 D/--/--
17-Jan-2020 NR/--/--
05-Dec-2019 CCC-/Negative/--
28-Nov-2018 CCC+/Negative/--
14-Sep-2018 B-/Negative/--
22-Mar-2010 B/Stable/--
22-Mar-2010 B/Watch Neg/--
22-Mar-2010 B/Stable/--
22-Mar-2010 B/Watch Neg/--
22-Mar-2010 B/Watch Dev/--
22-Mar-2010 B/Stable/--
26-Jun-2009 B+/Stable/--
02-Aug-2007 BB-/Stable/--
28-Mar-2002 B/Watch Pos/--
28-Mar-2002 B/Watch Neg/--
28-Mar-2002 B/Stable/--
28-Mar-2002 B/Negative/--
28-Mar-2002 B/Watch Neg/--
16-Mar-1993 BB-/Watch Neg/--
16-Mar-1993 BB-/Negative/--
16-Mar-1993 BB-/Stable/--
22-Apr-1992 BB/Stable/--
The McClatchy Co.
  • US$100 million 7.15% debenture due Nov. 1, 2027
  • US$300 million 6.875% debenture due March 15, 2029
  • US$310 million 9.00% notes due July 15, 2026
  • US$268 million 6.875% debenture due July 15, 2031
  • US$157 million 7.795% second-lien guaranteed secured due July 15, 2030

On Feb. 13, 2020, S&P Global Ratings lowered its long-term issuer credit rating on California-based newspaper publisher The McClatchy Co. to 'D' from 'CC' after the issuer filed for bankruptcy under Chapter 11. The company will continue its operation with operating cash flow liquidity and another US$50 million from debtors. The proposed reorganization involves the company eliminating more than half of its debt and transferring up to 97% of its equity to lenders.

On March 17, 2020, we withdrew our issuer credit rating at the issuer's request.

Table 57

Issuer Credit Rating--McClatchy Co. (The)
Date To
17-Mar-2020 NR/--/--
13-Feb-2020 D/--/--
17-Jan-2020 CC/Watch Neg/--
14-Nov-2019 CCC-/Negative/--
26-Mar-2018 CCC+/Negative/--
26-Mar-2018 CCC+/Stable/--
10-May-2011 B-/Stable/--
10-May-2011 B-/Positive/--
10-May-2011 B-/Stable/--
15-Dec-2010 B/Stable/--
11-Feb-2010 B-/Stable/--
30-Jun-2009 CC/Watch Pos/--
30-Jun-2009 CC/Negative/--
29-Jun-2009 SD/NM/--
22-May-2009 CC/Negative/--
06-Feb-2009 CCC+/Negative/--
29-Sep-2008 B/Negative/--
11-Jul-2008 B+/Negative/--
23-Apr-2008 BB-/Watch Neg/--
21-Nov-2007 BB/Negative/--
26-Apr-2007 BB+/Watch Neg/--
26-Apr-2007 BB+/Stable/--
28-Jun-2006 BBB/Watch Neg/--
28-Jun-2006 BBB/Stable/--
25-Nov-2003 BBB+/Watch Neg/--
25-Nov-2003 BBB+/Stable/--
29-Oct-2002 BBB/Positive/--
08-Feb-2000 BBB-/Positive/--
08-Feb-2000 BBB-/Stable/--
Moby SpA
  • €300 million 7.75% notes due Feb. 15, 2023
  • €200 million floating rate bank loan due Feb. 11, 2021
  • €60 million floating rate bank loan due Feb. 11, 2021

On Feb. 14, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Italy-based maritime transportation services Moby SpA to 'SD' from 'CCC-' after the company entered into a standstill agreement to not pay scheduled payments in mid-February.

On Jan. 18, 2021, S&P Global Ratings withdrew its ratings at the issuer's request.

Table 58

Issuer Credit Rating --Moby SpA
Date To
18-Jan-2021 NR/--/--
14-Feb-2020 SD/NM/--
21-Dec-2018 CCC-/Negative/--
16-Oct-2018 CCC+/Stable/--
25-Jun-2018 B/Negative/--
11-Mar-2016 B+/Watch Neg/--
11-Mar-2016 B+/Negative/--
11-Mar-2016 B+/Developing/--
NPC International Inc.
  • US$655 million floating rate first-lien term bank loan due April 19, 2024
  • US$100 million floating rate revolver bank loan due April 20, 2022
  • US$160 million floating rate second-lien term bank loan due April 18, 2025
  • US$35 million super-priority term bank loan due Jan. 21, 2021

On Feb. 14, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Kansas-based Pizza Hut restaurants franchise operator NPC International Inc. to 'SD' from 'CCC-' after the company decided not to make interest payments due Jan. 31, 2020. NPC is the largest franchisee of Pizza Hut and Wendy's restaurants operating nearly 1,600 locations in the U.S.

On July 1, 2020, S&P Global Ratings lowered the ratings on the issuer to 'D' from 'SD' following its Chapter 11 bankruptcy filing, following which, on Aug. 5, 2020, the ratings on the issuer were withdrawn.

Table 59

Issuer Credit Rating--NPC International Inc.
Date To
05-Aug-2020 NR/--/--
01-Jul-2020 D/--/--
14-Feb-2020 SD/NM/--
20-Sep-2019 CCC-/Negative/--
18-Apr-2019 CCC+/Negative/--
17-Apr-2015 B-/Stable/--
28-May-2008 B/Negative/--
28-May-2008 B/Stable/--
28-May-2008 B/Negative/--
28-May-2008 B/Watch Neg/--
28-May-2008 B/Stable/--
28-May-2008 B/Negative/--
28-May-2008 B/Stable/--
05-Apr-2006 B+/Negative/--
Pier 1 Imports Inc.
  • US$200 million floating rate term B bank loan due April 30, 2021

On Feb. 18, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Texas-based home décor and furniture retailer Pier 1 Imports Inc. to 'D' from 'CCC-' after the issuer filed for Chapter 11 bankruptcy. The company received commitments for US$256 million in debtor-in-possession financing from various lenders.

On March 26, 2020, we withdrew our issuer ratings at the company's request.

Table 60

Issuer Credit Rating--Pier 1 Imports Inc.
Date To
26-Mar-2020 NR/--/--
18-Feb-2020 D/--/--
24-Apr-2019 CCC-/Negative/--
21-Dec-2018 CCC+/Negative/--
17-May-2018 B-/Negative/--
15-Aug-2016 B/Watch Neg/--
15-Aug-2016 B/Stable/--
10-Apr-2014 B+/Stable/--
29-Oct-2007 NR/--/--
29-Oct-2007 CCC+/Negative/--
18-Sep-2006 B-/Watch Neg/--
07-Feb-2006 B/Watch Neg/--
18-Jul-2005 BB/Watch Neg/--
18-Jul-2005 BB/Stable/--
05-Jun-1998 BBB-/Watch Neg/--
05-Jun-1998 BBB-/Negative/--
05-Jun-1998 BBB-/Stable/--
24-Jun-1997 BB+/Stable/--
13-Sep-1996 BB/Stable/--
12-Jul-1996 NR/--/--
05-Jul-1983 BB-/Stable/--
05-Jul-1983 BB-/NM/--
05-Jul-1983 BB-/Stable/--
05-Jul-1983 BB-/Positive/--
05-Jul-1983 BB-/--/--
Tunghsu Group Co. Ltd.
  • US$440 million 7.00% guaranteed notes due June 12, 2020
  • CNY2 billion 6.2% debenture due July 30, 2020
  • CNY1 billion 7.00% notes due Sept. 28, 2020
  • CNY2 billion 7.5% debenture due Nov. 13, 2020
  • CNY1 billion 7.5% debenture due Jan. 18, 2021
  • CNY1 billion 7.85% notes due March 23, 2021
  • CNY1.5 billion 7.5% notes due June 13, 2021
  • CNY3.5 billion 7.8% debenture due July 25, 2021
  • CNY2.6 billion 8.18% debenture due Sept. 4, 2021
  • CNY900 million 8.18% debenture due Oct. 25, 2021
  • CNY500 million 6.8% debenture due March 13, 2022
  • CNY2.5 billion 6.55% debenture due March 13, 2022

On Feb. 21, 2020, S&P Global Ratings lowered its long-term issuer credit rating on China-based high technology service provider Tunghsu Group Co. Ltd. to 'SD' from 'CCC-' after the issuer missed interest and principal payments on three onshore bonds. Tunghsu also signed a letter of intent to acquire a 26%-38% stake in Alderon Iron Ore Corp., which would be conducted by its subsidiary.

On April 29, 2020, S&P Global Ratings withdrew its ratings at the issuer's request.

Table 61

Issuer Credit Rating--Tunghsu Group Co. Ltd.
Date To
29-Apr-2020 NR/--/--
21-Feb-2020 SD/NM/--
19-Nov-2019 CCC-/Watch Neg/--
18-Feb-2019 B-/Negative/--
22-Oct-2018 B/Stable/--
31-May-2017 B+/Negative/--
31-May-2017 B+/Stable/--
VIP Cinema Holdings Inc.
  • US$165 million floating rate first-lien term bank loan due March 1, 2023
  • US$45 million floating rate second-lien term bank loan due March 1, 2024
  • US$20 million floating rate revolver bank loan due March 1, 2022

On Feb. 24, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Mississippi-based consumer products supplier VIP Cinema Holdings Inc. to 'D' from 'CCC-' after the issuer filed for Chapter 11 bankruptcy.

On April 24, 2020, S&P Global Ratings withdrew its ratings at the issuer's request.

Table 62

Issuer Credit Rating--VIP Cinema Holdings Inc.
Date To
24-Apr-2020 NR/--/--
24-Feb-2020 D/--/--
29-Aug-2019 CCC-/Negative/--
27-Mar-2019 CCC/Negative/--
12-Dec-2018 B-/Negative/--
08-Feb-2017 B/Stable/--
Calfrac Well Services Ltd.
  • US$650 million 8.50% notes due June 15, 2026
  • US$120 million second-lien 10.875% notes due March 15, 2026
  • C$335 million first-lien senior secured revolver due June 1, 2022

On Feb. 25, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Canada-based oilfield services provider Calfrac Well Services Ltd. to 'SD' from 'CC' after the company completed a distressed exchange on the U.S. dollar unsecured notes due in 2026.

On Feb. 28, 2020, S&P Global Ratings raised the long-term issuer ratings on Calfrac to 'CCC-' from 'SD' after it completed a debt exchange, which reduced the debt by US$98 million.

On June 15, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Calfrac to 'D' from 'CCC-' after the issuer missed an interest payment due on June 15 and entered into the grace period.

On July 20, 2020, S&P Global Ratings withdrew its ratings at the issuer's request.

Table 63

Issuer Credit Rating--Calfrac Well Services Ltd.
Date To
20-Jul-2020 NR/--/--
15-Jun-2020 D/--/--
28-Feb-2020 CCC-/Negative/--
25-Feb-2020 SD/NM/--
28-Jan-2020 CC/Negative/--
17-Jan-2020 CCC+/Negative/--
24-May-2019 B-/Stable/--
12-Feb-2018 B-/Positive/--
07-Oct-2016 CCC+/Negative/--
28-Oct-2015 B/Negative/--
11-Dec-2013 BB-/Stable/--
26-Nov-2013 B+/Watch Pos/--
08-Nov-2010 B+/Stable/--
10-Feb-2009 B+/Negative/--
29-Jan-2007 B+/Stable/--
PFS Holding Corp.
  • US$280 million floating rate first-lien term bank loan due Jan. 31, 2021
  • US$110 million floating rate second-lien term bank loan due Jan. 31, 2022

On Feb. 28, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Pennsylvania-based pet food distributor PFS Holding Corp. (PFS) to 'SD' from 'CCC-' after the issuer missed interest payments on its US$ 280 million first-lien bank loan due on Feb. 18, 2020. PFS also announced an agreement to merge with Animal Supply Co.

On May 6, 2020, S&P Global Ratings lowered its ratings on the issuer to 'D' from 'SD' upon missed interest payments, following which, on May 14, 2020, the ratings on the issuer were withdrawn.

Table 64

Issuer Credit Rating--PFS Holding Corp.
Date To
14-May-2020 NR/--/--
06-May-2020 D/--/--
28-Feb-2020 SD/NM/--
10-Apr-2018 CCC-/Negative/--
05-Dec-2017 CCC+/Negative/--
22-Aug-2014 B-/Stable/--
22-Aug-2014 B-/Positive/--
22-Aug-2014 B-/Stable/--
23-Jan-2014 B/Stable/--
Pioneer Energy Services Corp.
  • US$250 million 6.125% senior notes due March 15, 2022
  • US$175 million floating rate term B bank loan due Nov. 8, 2022

On March 3, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Texas-based oilfield services provider Pioneer Energy Services Corp. to 'D' from 'CCC-'. The company filed for Chapter 11 bankruptcy with a prepackaged plan to equitize around US$300 million of unsecured notes.

On May 11, 2020, S&P Global Ratings withdrew its ratings at the issuer's request.

Table 65

Issuer Credit Rating--Pioneer Energy Services Corp.
Date To
11-May-2020 NR/--/--
03-Mar-2020 D/--/--
17-Dec-2019 CCC-/Negative/--
23-Jan-2019 CCC+/Negative/--
22-Apr-2016 B-/Negative/--
27-Apr-2012 B+/Negative/--
27-Apr-2012 B+/Stable/--
26-Feb-2010 B/Stable/--
Bluestem Brands Inc.
  • US$200 million first-lien senior secured asset-based revolver due July 10, 2020
  • US$579 million first-lien guaranteed senior secured term B due Nov. 7, 2020

On March 9, 2020, Bluestem Brands Inc. defaulted, having filed for Chapter 11 bankruptcy to restructure its debt. Earlier on Feb. 13, 2020, we withdrew the ratings at the issuer's request.

Table 66

Issuer Credit Rating--Bluestem Brands Inc.
Date To
09-Mar-2020 D/--/--
13-Feb-2020 NR/--/--
28-Jan-2020 CCC-/Negative/--
09-Nov-2018 CCC/Negative/--
10-Jul-2017 CCC+/Negative/--
16-Feb-2017 B/Negative/--
16-Jun-2015 B+/Stable/--
16-Jun-2015 B+/Watch Neg/--
16-Jun-2015 B+/Stable/--
13-Nov-2013 B/Stable/--
Ascena Retail Group Inc.
  • US$1.8 billion floating rate term loan bank loan due Aug. 21, 2022

On March 12, 2020, S&P Global Ratings lowered its long-term issuer credit rating on New Jersey-based apparel retailer Ascena Retail Group Inc. to 'SD' from 'CCC' after the issuer repurchased US$122 million debt in two tranches, at approximately 37% below par. The cumulative value of the repurchase represents nearly 9% of the term loan debt outstanding compared with the value in fiscal 2019.

On March 16, 2020, S&P Global Ratings raised its rating on the issuer to 'CCC-' from 'SD'.

On July 23, 2020, S&P Global Ratings lowered its rating on the issuer to 'D' from 'CCC-' upon the company filing for Chapter 11 bankruptcy, following which, on Jan. 5, 2021, the ratings on the issuer were withdrawn.

Table 67

Issuer Credit Rating--Ascena Retail Group Inc.
Date To
05-Jan-2021 NR/--/--
23-Jul-2020 D/--/--
16-Mar-2020 CCC-/Negative/--
12-Mar-2020 SD/NM/--
20-Nov-2019 CCC/Negative/--
19-Jun-2019 CCC+/Negative/--
05-Apr-2019 B-/Negative/--
14-Mar-2018 B/Negative/--
28-Sep-2017 B+/Negative/--
03-Jun-2016 BB-/Negative/--
03-Jun-2016 BB-/Stable/--
26-Jun-2015 BB/Stable/--
24-Jul-2013 NR/--/--
22-May-2012 BB-/Positive/--
22-May-2012 BB-/Stable/--
Optimas OE Solutions Holding LLC
  • US$225 million 8.625% notes due June 1, 2021

On March 12, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Illinois-based engineered fastener distributor Optimas OE Solutions Holding LLC to 'SD' from 'CCC+'. The downgrade followed the completion of the partial repurchase of senior secured notes.

On March 18, 2020, S&P Global Ratings raised its ratings on the issuer to 'CCC' from 'SD', reflecting our view that there was a possibility of additional debt restructuring.

On Jan. 8, 2021, S&P Global Ratings withdrew its issuer credit rating at the company's request.

Table 68

Issuer Credit Rating--Optimas OE Solutions Holding LLC
Date To
08-Jan-2021 NR/--/--
18-Mar-2020 CCC/Negative/--
12-Mar-2020 SD/NM/--
06-Sep-2019 CCC+/Negative/--
25-Apr-2016 B-/Stable/--
25-Apr-2016 B-/Negative/--
20-Apr-2015 B/Stable/--
Frontier Communications Corp.
  • US$225 million 8.625% notes due June 1, 2021
  • US$50 million 8.40% debenture due Oct. 15, 2029
  • US$100 million 7.68% debenture due Oct. 1, 2034
  • US$125 million 7.45% debenture due July 1, 2035
  • US$150 million 7.00% debenture due Nov. 1, 2025
  • US$100 million 6.80% debenture due Aug. 15, 2026
  • US$200 million 7.05% debenture due Oct. 1, 2046
  • US$1.095 billion 9.00% senior notes due Aug. 15, 2031
  • US$400 million 7.875% senior notes due Jan. 15, 2027
  • US$1.1 billion 8.50% senior notes due April 15, 2020
  • US$500 million 8.75% notes due April 15, 2022
  • US$500 million 9.25% senior unsecured notes due July 1, 2021
  • US$800 million 7.125% senior unsecured notes due Jan. 15, 2023
  • US$750 million 7.625% senior unsecured notes due April 15, 2024
  • US$775 million 6.25% senior notes due Sept. 15, 2021
  • US$775 million 6.875% senior notes due Jan. 15, 2025
  • US$1.5 billion floating rate delayed draw term A bank loan due March 31, 2021
  • US$1 billion 8.875% notes due Sept. 15, 2020
  • US$3.6 billion 11.00% notes due Sept. 15, 2025
  • US$2 billion 10.50% notes due Sept. 15, 2022
  • US$315 million floating rate term bank loan due Oct. 12, 2021
  • US$850 million floating rate revolver bank loan due Feb. 27, 2024
  • US$1.74 billion floating rate Term B-1 bank loan due June 15, 2024
  • US$1.6 billion second-lien notes due April 1, 2026
  • US$1.65 billion 8.00% first-lien notes due April 1, 2027
  • US$200 million 6.75% debenture series F due May 15, 2027
  • US$93.45 million 6.75% debenture series F due May 15, 2027
  • US$300 million 6.86% debenture series E due Feb. 1, 2028
  • US$24 million 6.86% debenture series E due Feb. 1,2028
  • US$200 million 6.73% debenture series G due Feb. 15, 2028
  • US$10 million 6.73% debenture series G due Feb. 15, 2028
  • US$100 million 8.50% first mortgage bond due Nov. 15, 2031

On March 16, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Connecticut-based telecom operator Frontier Communications Corp. to 'SD' from 'CCC-' after the issuer missed interest payments of about US$322 million. Even with a 60-day grace period, we did not expect payments.

On April 15, 2020, S&P Global Ratings lowered its rating on the issuer to 'D' from 'SD' upon the company filing for Chapter 11 bankruptcy, following which, on May 28, 2021, the ratings on the issuer were withdrawn.

Table 69

Issuer Credit Rating--Frontier Communications Corp.
Date To
28-May-2020 NR/--/--
15-Apr-2020 D/--/--
16-Mar-2020 SD/NM/--
18-Nov-2019 CCC-/Negative/--
20-Jun-2019 CCC/Negative/--
03-Aug-2018 CCC+/Negative/--
07-Feb-2018 B-/Negative/--
07-Feb-2018 B-/Watch Neg/--
03-Aug-2017 B/Negative/--
01-Mar-2017 B+/Stable/--
25-Jan-2013 BB-/Watch Neg/--
25-Jan-2013 BB-/Stable/--
08-May-2008 BB/Negative/--
08-May-2008 BB/Stable/--
21-Jul-2004 BB+/Negative/--
21-Jul-2004 BB+/Watch Neg/--
21-Jul-2004 BB+/Negative/--
21-Jul-2004 BB+/Watch Neg/--
21-Jul-2004 BB+/Negative/--
04-Apr-2001 BBB/Watch Neg/--
04-Apr-2001 BBB/Stable/--
04-Apr-2001 BBB/Negative/--
26-Oct-2000 A-/Watch Neg/--
19-Aug-1999 A+/Watch Neg/--
19-Aug-1999 A+/Stable/--
07-May-1998 AA-/Watch Neg/--
07-May-1998 AA-/Negative/--
25-Oct-1995 AA+/Negative/--
25-Oct-1995 AA+/Stable/--
09-Sep-1981 AAA/Watch Neg/--
09-Sep-1981 AAA/Stable/--
09-Sep-1981 AAA/Watch Neg/--
07-Feb-1975 AA+/--/--
13-Nov-1970 AA/--/--
23-Jul-1959 A/--/--
05-May-1949 BBB/--/--
17-Mar-1947 BB/--/--
Internap Corp.
  • US$435 million floating rate first-lien term bank loan due April 6, 2022
  • US$35 million revolver bank loan due Oct. 6, 2021

On March 17, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Georgia-based data center operator Internap Corp. to 'D' from 'CCC+' after the issuer, along with its subsidiaries, filed for Chapter 11 bankruptcy with the Southern District of New York.

On June 24, 2020, S&P Global Ratings withdrew its issuer credit rating at the company's request.

Table 70

Issuer Credit Rating--Internap Corp.
Date To
24-Jun-2020 NR/--/--
17-Mar-2020 D/--/--
16-Aug-2019 CCC+/Negative/--
20-Jun-2019 B-/Stable/--
14-Nov-2013 B/Stable/--
14-Nov-2013 B/Negative/--
14-Nov-2013 B/Stable/--
Geo Energy Resources Ltd.
  • US$300 million 8.00% notes due Oct. 4, 2022

On March 19, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Singapore-based Geo Energy Resources Ltd. to 'SD' from 'B-' after the issuer completed debt buybacks. The buyback worth was around US$76 million between March 13 and March 17 and at a discount, and these buybacks were considered distressed, rather than an opportunistic attempt.

On Dec. 8, 2020, we raised the rating on the issuer to 'CCC' from 'SD', reflecting our view of reduced refinancing risk.

Table 71

Issuer Credit Rating--Geo Energy Resources Ltd.
Date To
08-Dec-2020 CCC/Stable/--
19-Mar-2020 SD/NM/--
05-Jul-2019 B-/Negative/--
07-Jul-2017 B/Stable/--
Grain Insurance Co. JSC

On March 20, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Kazakhstan-based Grain Insurance Co. JSC to 'D' from 'B' after the issuer missed payments to the counterparties. In addition, on March 13, 2020, the issuer's license was suspended by the Kazakh insurance regulator due to breach of the regulatory ratios.

On July 9, 2020, S&P Global Ratings withdrew its issuer credit rating at the company's request.

Table 72

Issuer Credit Rating--Grain Insurance Co. JSC
Date To
09-Jul-2020 NR/--/--
20-Mar-2020 D/--/--
08-Nov-2012 B/Stable/--
08-Nov-2012 B/Developing/--
08-Nov-2012 B/Positive/--
08-Nov-2012 B/Stable/--
Optiv Inc.
  • US$800 million floating rate first-lien term bank loan due Feb. 1, 2024
  • US$230 million floating rate second-lien term bank loan due Jan. 31, 2025

On March 27, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Colorado-based cyber security provider Optiv Inc. to 'SD' from 'CCC+' after the issuer completed a distressed exchange, repurchasing about US$47 million of second-lien debt for about US$23 million.

On April 2, 2020, S&P Global Ratings raised its issuer credit rating on Optiv Inc. to 'CCC' from 'SD', on the view that the company was willing to use its liquidity to repay additional debt. On Dec. 7, 2020, the issuer credit rating on the company was raised to 'CCC+'.

Table 73

Issuer Credit Rating--Optiv Inc.
Date To
07-Dec-2020 CCC+/Stable/--
02-Apr-2020 CCC/Negative/--
27-Mar-2020 SD/NM/--
28-Aug-2019 CCC+/Stable/--
16-Jun-2017 B-/Stable/--
08-Jan-2017 B/Negative/--
Yida China Holdings Ltd.
  • US$300 million 6.95% notes due April 19, 2020
  • US$224 million 10% step-up notes due March 27, 2022

On March 27, 2020, S&P Global Ratings lowered its long-term issuer credit rating on China-based business parks developer and operator Yida China Holdings Ltd. to 'SD' from 'CC' after the issuer completed a distressed exchange.

On April 1, 2020, we raised the issuer credit rating on Yida to CCC-' from 'SD' on a reassessment of the company's credit profile. On the same day, we withdrew the ratings at the company's request.

Table 74

Issuer Credit Rating--Yida China Holdings Ltd.
Date To
01-Apr-2020 NR/--/--
01-Apr-2020 CCC-/Negative/--
27-Mar-2020 SD/NM/--
26-Feb-2020 CC/Negative/--
06-Dec-2019 CCC-/Negative/--
18-Apr-2019 CCC/Negative/--
31-Jan-2019 CCC+/Negative/--
21-Aug-2018 B-/Negative/--
10-Apr-2017 B/Negative/--
10-Apr-2017 B/Stable/--
PGX Holdings Inc.
  • US$175 million second-lien term bank loan due Sept. 29, 2021
  • US$100 million first-lien senior secured term bank loan due Sept. 29, 2020
  • US$380 million floating rate term B bank loan due Sept. 29, 2020

On April 1, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Utah-based credit report repair service provider PGX Holdings Inc. to 'D' from 'CCC'. The issuer entered into a forbearance agreement for its term loan, which allowed it to defer the interest and principal payments for 30 days until April 30, 2020.

On June 5, 2020, we raised the rating on the issuer to 'CCC+' from 'D' on revised credit agreements, which reduced its annual cash interest payments by $10 million, which, in turn, alleviated near-term liquidity concern.

Table 75

Issuer Credit Rating--PGX Holdings Inc.
Date To
05-Jun-2020 CCC+/Negative/--
01-Apr-2020 D/--/--
13-Nov-2019 CCC/Negative/--
02-Apr-2019 CCC+/Negative/--
16-Jan-2018 B-/Negative/--
10-Sep-2014 B/Stable/--
09-Apr-2014 NR/--/--
12-Mar-2014 B/Stable/--
Steak n Shake Inc.
  • US$220 million floating rate term bank loan due March 19, 2021

On April 1, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Texas-based hamburger restaurant chain Steak n Shake Inc. to SD from 'CCC-' after the issuer completed a distressed exchange by retiring a portion of its term loan.

On April 6, 2020, we raised the issuer rating to 'CCC-' from 'SD' to reflect the risk of a conventional default or restructuring, which was likely in the following six months.

Table 76

Issuer Credit Rating--Steak n Shake Inc.
Date To
06-Apr-2020 CCC-/Negative/--
01-Apr-2020 SD/NM/--
19-Jul-2019 CCC-/Negative/--
07-Jun-2018 CCC/Negative/--
25-Jan-2018 CCC+/Negative/--
25-Aug-2017 B-/Negative/--
20-Sep-2016 B-/Stable/--
03-Mar-2014 B/Stable/--
19-Oct-2012 NR/--/--
06-Oct-2011 B/Stable/--
Whiting Petroleum Corp.
  • US$2.4 billion bank loan due April 12, 2023
  • US$1.2 billion 5.75% notes due March 15, 2021
  • US$750 million 6.25% notes due April 1, 2023
  • US$1 billion convertible due April 1, 2020
  • US$173.914 million 5.75% convertible notes due 2021
  • US$162.962 million 6.25% convertible notes due 2023
  • US$750 million 6.625% senior notes due Jan. 15, 2026

On April 1, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Colorado-based crude oil and natural gas exploration and production company Whiting Petroleum Corp to 'D' from 'CCC+' after the issuer filed for voluntary Chapter 11 bankruptcy. The issuer agreed with certain majority debtholders to convert US$2.2 billion of existing debt into new equity.

On May 11, 2020, we withdrew the ratings on the issuer.

Table 77

Issuer Credit Rating--Whiting Petroleum Corp.
Date To
11-May-2020 NR/--/--
01-Apr-2020 D/--/--
06-Mar-2020 CCC+/Negative/--
13-Dec-2019 BB-/Negative/--
08-Aug-2019 BB-/Stable/--
10-Aug-2018 BB/Stable/--
19-Dec-2016 BB-/Stable/--
09-Feb-2016 B+/Negative/--
02-Oct-2015 BB/Stable/--
16-Jan-2015 BB+/Negative/--
14-Nov-2014 BB+/Stable/--
16-Jul-2014 BB+/Positive/--
25-Jan-2012 BB+/Stable/--
16-Sep-2009 BB/Stable/--
30-Apr-2009 BB-/Stable/--
26-Jan-2009 BB-/Negative/--
12-Dec-2008 BB-/Stable/--
31-Jul-2008 BB-/Positive/--
06-Jul-2006 BB-/Stable/--
09-May-2006 B+/Watch Pos/--
10-Apr-2006 B+/Positive/--
23-Sep-2005 B+/Stable/--
28-Jul-2005 B+/Watch Neg/--
03-Sep-2004 B+/Stable/--
29-Apr-2004 B+/Positive/--
KCA DEUTAG Alpha Ltd.
  • US$375 million floating rate term loan B bank loan due Feb. 28, 2023
  • US$215 million first-lien guaranteed senior secured revolver bank loan due March 31, 2022
  • US$375 million 7.25% notes due May 15, 2021
  • US$535 million 9.875% notes due April 1, 2022
  • US$400 million 9.625% notes due April 1, 2023

On April 2, 2020, S&P Global Ratings lowered its long-term issuer credit rating on U.K.-based oilfield services company KCA DEUTAG Alpha Ltd. to 'SD' from 'CCC+' after the issuer announced it would use the grace period for interest payments. The issuer was going through debt restructuring for a wider capital improvement, but was adversely affected by falling oil prices and the coronavirus pandemic. Later, on May 2, 2020, the issuer entered into standstill agreement with the lenders of the notes due 2021 and the term loan due 2023, until July 31, 2020.

Table 78

Issuer Credit Rating--KCA DEUTAG Alpha Ltd.
Date To
02-Apr-2020 SD/NM/--
06-Sep-2019 CCC+/Negative/--
12-Jun-2019 CCC+/Stable/--
13-Mar-2018 B-/Stable/--
09-Mar-2017 CCC+/Positive/--
31-Oct-2016 CCC+/Stable/--
12-Apr-2016 B-/Negative/--
22-Oct-2015 B/Negative/--
13-Jul-2011 B/Stable/--
23-Feb-2011 CCC/Developing/--
10-Aug-2010 CCC/Negative/--
16-Nov-2009 B-/Watch Neg/--
22-Apr-2009 B-/Negative/--
20-Feb-2009 B+/Watch Neg/--
16-Apr-2008 B+/Stable/--
CDS Group
  • US$815 million floating rate first-lien term bank loan due July 8, 2022
  • US$150 million floating rate second-lien term bank loan due July 10, 2023
  • US$120 million floating rate revolver bank loan due June 30, 2022

On April 3, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Canada-based theatrical and live entertainment company CDS Group to 'D' from 'CCC-', reflecting payment default after the issuer didn't made interest and principal payments on first lien-debt and interest payment on second-lien debt, both of which were due March 31, 2020.

On July 2, 2020, we withdrew the ratings on the issuer.

Table 79

Issuer Credit Rating--CDS Group
Date To
02-Jul-2020 NR/--/--
03-Apr-2020 D/--/--
27-Mar-2020 CCC-/Negative/--
20-Mar-2020 B-/Watch Neg/--
12-Jun-2018 B/Negative/--
09-Jun-2015 B/Stable/--
New Millennium Holdco Inc.
  • US$600 million floating rate term bank loan due Dec. 21, 2020

On April 3, 2020, S&P Global Ratings lowered its long-term issuer credit rating on California-based clinical toxicology laboratory services provider New Millennium Holdco Inc. to 'D' from 'CC'. The issuer missed the interest and principal payment on its term loan of outstanding value of US$557 million, which was originally US$600 million.

On May 27, 2020, we withdrew the ratings on the issuer.

Table 80

Issuer Credit Rating--New Millennium Holdco Inc.
Date To
27-May-2020 NR/--/--
03-Apr-2020 D/--/--
04-Apr-2019 CC/Negative/--
31-Oct-2016 CCC+/Negative/--
17-Jun-2016 B-/Stable/--
BW Homecare Holdings LLC
  • US$80 million floating rate revolver bank loan due May 15, 2023
  • US$195 million floating rate second-lien term bank loan due May 15, 2026
  • US$660 million floating rate first-lien term bank loan due May 15, 2025

On April 6, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Texas-headquartered home health provider BW Homecare Holdings LLC to 'SD' from 'CCC'. The issuer, doing business as Elara Caring, completed the exchange of its US$195 million second-lien debt for US$186 million new junior 1.5-lien debt. This restructuring was viewed as a distressed exchange because it would delay the interest payments.

On April 9, 2020, we raised the ratings on the issuer to 'CCC' from 'D' on the expectation of average leverage above 15x. The principal liquidity sources for the issuer involves US$48 million cash on hand and about US$35 million to US$55 million available in revolving credits.

Table 81

Issuer Credit Rating--BW Homecare Holdings LLC
Date To
09-Apr-2020 CCC/Developing/--
06-Apr-2020 SD/NM/--
23-Oct-2019 CCC/Negative/--
20-Jul-2018 B-/Positive/--
FE Investments Ltd.

On April 6, 2020, S&P Global Ratings lowered its long-term issuer credit rating on New Zealand-based nonbank financier FE Investments Ltd. to 'D' from 'CCC'. The issuer was unable to raise capital to maintain the regulatory minimum, and subsequently the principal and interest payments to the depositors were suspended. The issuer was facing a rise in additional loan loss provision, which was attributed to the large nonperforming loans. As a result, the trustee placed the issuer into receivership (with KordaMentha as receivers).

On June 4, 2020, we withdrew the ratings on the issuer because of insufficient information to continue the surveillance of the ratings.

Table 82

Issuer Credit Rating--FE Investments Ltd.
Date To
04-Jun-2020 NR/--/--
06-Apr-2020 D/--/--
19-Dec-2019 CCC/Developing/--
03-Oct-2019 B/Stable/--
04-Feb-2019 B/Watch Neg/--
22-Mar-2018 B/Negative/--
02-Jun-2016 B/Stable/--
20-Apr-2016 B/Watch Neg/--
21-Mar-2014 B/Stable/--
Gavilan Resources LLC
  • US$450 million floating rate second-lien bank loan due March 1, 2024
  • US$350 million first-lien senior secured revolver bank loan due March 1, 2022

On April 7, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Texas-based exploration and production (E&P) company Gavilan Resources LLC to 'D' from 'CCC-'. The issuer missed the interest payment on its US$450 million second-lien debt.

On May 21, 2020, S&P Global Ratings withdrew its ratings on the issuer.

Earlier, on April 1, 2020, we lowered our issuer credit rating on Gavilan to 'CCC-' from 'CCC+' after the issuer drew the full amount on the US$200 million reserve-based lending facility, which was up for redetermination in April 2020. The issuer was hit by an ongoing bankruptcy proceeding of its joint venture partner Sanchez Energy and by the decline in oil prices owing to the Saudi-Russia price war and decline in demand related to the coronavirus pandemic.

Table 83

Issuer Credit Rating--Gavilan Resources LLC
Date To
21-May-2020 NR/--/--
07-Apr-2020 D/--/--
01-Apr-2020 CCC-/Negative/--
30-May-2019 CCC+/Negative/--
07-Dec-2018 B-/Watch Neg/--
14-Feb-2017 B/Stable/--
Jason Inc.
  • US$25.5 million floating rate revolver bank loan due Dec. 31, 2020
  • US$310 million floating rate first-lien term bank loan due June 30, 2021
  • US$110 million floating rate second-lien term bank loan due June 30, 2022

On April 7, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Wisconsin-based industrial products manufacturer Jason Inc. to 'SD' from 'CCC'. The issuer entered into a forbearance agreement with its first-lien lenders and missed the quarterly interest payment on second-lien debt. The issuer has been facing negative free cash flows and unsustainable leverage because of its high debt balance and uneven operating performance.

On June 8, 2020, we lowered our issuer credit rating to 'D' from 'SD' after the issuer's announcement of a reorganization petition filed under Chapter 11 of the Bankruptcy Code.

On Aug. 28, 2020, we withdrew our ratings on the company.

Table 84

Issuer Credit Rating--Jason Inc.
Date To
28-Aug-2020 NR/--/--
08-Jun-2020 D/--/--
07-Apr-2020 SD/NM/--
06-Mar-2020 CCC/Negative/--
13-Aug-2019 CCC+/Negative/--
25-Apr-2018 B/Stable/--
14-Oct-2016 B/Negative/--
29-Apr-2014 B/Stable/--
18-Mar-2014 B+/Watch Neg/--
05-Feb-2013 B+/Stable/--
Quorum Health Corp.
  • US$62.5 million floating rate revolver bank loan due April 29, 2021
  • US$880 million floating rate term B bank loan due April 29, 2022
  • US$400 million 11.625% notes due 2023

On April 7, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Tennessee-based health care service provider Quorum Health Corp. to 'D' from 'CCC-'. The issuer announced a restructuring agreement as well as filed petitions under Chapter 11. It is expected to reduce debt by US$500 million.

On July 14, 2020, we withdraw our ratings on the issuer.

Table 85

Issuer Credit Rating--Quorum Health Corp.
Date To
14-Jul-2020 NR/--/--
07-Apr-2020 D/--/--
14-Nov-2019 CCC-/Negative/--
14-May-2019 CCC/Negative/--
20-Mar-2019 CCC+/Stable/--
24-Apr-2017 B-/Negative/--
29-Mar-2017 B-/Watch Neg/--
29-Aug-2016 B/Negative/--
24-Mar-2016 B/Stable/--
Speedcast International Ltd.
  • US$600 million floating rate bank loan due May 15, 2025
  • US$100 million first-lien guaranteed senior secured revolver bank loan due May 15, 2023

On April 7, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Australia-based telecom service provider Speedcast International Ltd. to 'D' from 'CCC' after the issuer missed interest payments on its US$600 million term loan, due on March 31, 2020.

Earlier, on Feb. 9, 2020, we lowered the issuer credit rating on Speedcast to 'CCC' from 'B-' after the issuer announced lower 2019 earnings, which intensified pressure on the group's liquidity.

Table 86

Issuer Credit Rating--Speedcast International Ltd.
Date To
07-Apr-2020 D/--/--
09-Feb-2020 CCC/Negative/--
03-Nov-2019 B-/Negative/--
02-Sep-2019 B/Watch Neg/--
04-Jul-2019 B+/Negative/--
19-Apr-2018 BB-/Stable/--
North American Lifting Holdings Inc.
  • US$30 million floating rate revolving bank loan due Aug. 27, 2020
  • US$185 million floating rate second-lien term bank loan due Nov. 29, 2021
  • US$470 million floating rate first-lien term bank loan due Nov. 27, 2020

On April 8, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Texas-based specialized crane service provider North American Lifting Holdings Inc. to 'SD' from 'CCC-'. The issuer entered into a forbearance agreement for deferring the interest payments on its second lien-term loan until June 30, 2020.

On July 1, 2020, S&P Global Ratings lowered its issuer credit rating to 'D' following the company's missed interest payments on its first-lien and second-lien debt and entrance into another forbearance agreement until Sept. 30, 2020.

On Oct. 20, 2020, S&P Global Ratings assigned its 'B-' issuer credit rating on the company, with a negative outlook. The company emerged from Chapter 11 bankruptcy protection on Oct. 16, 2020, with a new capital structure and name, TNT Crane & Rigging LLC. The company eliminated its prepetition debt during the bankruptcy process. The company's new credit group includes wholly owned subsidiary Rocky Mountain Structures Inc. The negative outlook reflects the potential for a lower rating if continued weak operating performance meaningfully pressures the company's liquidity.

Table 87

Issuer Credit Rating--North American Lifting Holdings Inc.
Date To
20-Oct-2020 B-/Negative/--
01-Jul-2020 D/--/--
08-Apr-2020 SD/NM/--
21-Nov-2019 CCC-/Negative/--
03-Jul-2018 CCC+/Negative/--
16-Apr-2018 CCC-/Negative/--
21-Nov-2017 CCC/Negative/--
15-Apr-2016 CCC+/Negative/--
13-Nov-2015 B-/Stable/--
19-Jun-2015 B/Negative/--
07-Nov-2013 B/Stable/--
SPR Holdings LLC
  • US$650 million 7.125% senior unsecured notes due Nov. 1, 2020
  • US$600 million 7.375% senior unsecured notes due Nov. 1, 2021
  • US$707.6 million 12.00% notes due Oct. 1, 2024

On April 8, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Texas-based exploration and production company SPR Holdings LLC to 'D' from 'CCC+' after the issuer missed an interest payment due April 1, 2020. The depressed commodity prices, the company's liquidity position, and the ongoing capital needs to maintain production were the main factors behind the decision.

On May 27, 2020, S&P Global Ratings withdrew its ratings on the issuer.

Table 88

Issuer Credit Rating--SPR Holdings LLC
Date To
27-May-2020 NR/--/--
08-Apr-2020 D/--/--
20-Nov-2019 CCC+/Negative/--
18-Jul-2019 D/--/--
08-May-2019 CC/Negative/--
27-Jul-2018 CCC/Negative/--
11-Sep-2017 CCC+/Negative/--
25-May-2016 CCC/Negative/--
13-May-2016 SD/NM/--
02-Oct-2015 CCC+/Negative/--
04-May-2015 B-/Negative/--
30-Oct-2014 B/Negative/--
Vestel Elektronik Sanayi Ve Ticaret A.S.

On April 10, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Turkey-based household appliance manufacturer Vestel Elektronik Sanayi Ve Ticaret A.S. to 'SD' from 'CCC+' after the issuer postponed a portion of its financial obligation due in June for three to six months.

The issuer has limited refinancing options owing to the disruptions caused by the coronavirus and the presence of foreign currency-denominated debt, about 40%.

On April 17, 2020, we raised the issuer credit ratings to 'CCC-' after the issuer was able to shift a huge portion of debt maturing in the second quarter of 2020 to the next quarter.

Subsequently, on June 29, 2020, S&P Global Ratings withdrew its ratings on the issuer.

Table 89

Issuer Credit Rating--Vestel Elektronik Sanayi Ve Ticaret A.S.
Date To
29-Jun-2020 NR/--/--
17-Apr-2020 CCC-/Negative/--
10-Apr-2020 SD/NM/--
18-Sep-2018 CCC+/Stable/--
03-Feb-2017 B-/Negative/--
17-Sep-2015 B-/Stable/--
31-Oct-2014 B-/Positive/--
30-Nov-2012 B-/Stable/--
20-Jan-2012 B-/Positive/--
22-Feb-2010 B-/Stable/--
22-Dec-2008 B-/Negative/--
21-Dec-2007 B/Negative/--
22-Jun-2007 B+/Stable/--
30-Jan-2007 B+/Positive/--
27-Sep-2005 B+/Negative/--
22-Apr-2005 B+/Stable/--
01-Oct-2004 B/Positive/--
07-Nov-2002 B-/Stable/--
10-Jul-2002 B-/Negative/--
03-Dec-2001 B-/Stable/--
11-Jul-2001 B-/Negative/--
30-Apr-2001 B-/Stable/--
17-Apr-2001 B-/Watch Neg/--
23-Feb-2001 B/Watch Neg/--
21-Feb-2001 B+/Watch Neg/--
05-Dec-2000 B+/Stable/--
09-Jun-2000 B+/Positive/--
Pace Industries Inc.

On April 12, 2020, Pace Industries Inc. filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. The issuer halted production at some of its plants because of the impact of the coronavirus pandemic and reached an agreement with its senior secured lenders for a financial restructuring plan.

S&P Global Ratings had previously withdrawn its ratings on Pace.

Table 90

Issuer Credit Rating--Pace Industries Inc.
Date To
26-Oct-2000 NR/--/--
17-May-1996 A/Stable/--
07-May-1996 B/Watch Pos/--
16-Dec-1993 B/Stable/--
LSC Communications Inc.
  • US$300 million floating rate revolver bank loan due Sept. 30, 2021
  • US$450 million 8.75% senior notes due Oct. 15, 2023
  • US$312.5 million floating rate term B bank loan due Sept. 30, 2022

On April 14, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Chicago-based printing and digital media company LSC Communications Inc. to 'D' from 'CC' after the issuer filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. The issuer was looking for alternatives while remaining operational through bankruptcy, with the help of operational free cash flows and debtor-in-possession financing, approximately US$100 million.

On May 28, 2020, S&P Global Ratings withdrew its ratings on the issuer.

Earlier, on March 2, 2020, we lowered our issuer credit ratings on LSC to 'CC' from 'CCC+' after the issuer entered into a forbearance agreement for failing to comply with its consolidated leverage and interest ratio credit agreements covenants.

Table 91

Issuer Credit Rating--LSC Communications Inc.
Date To
28-May-2020 NR/--/--
14-Apr-2020 D/--/--
02-Mar-2020 CC/Watch Neg/--
26-Jul-2019 CCC+/Negative/--
25-Jun-2019 B/Watch Dev/--
31-Oct-2018 B+/Watch Pos/--
25-Sep-2018 B+/Negative/--
22-Sep-2017 B+/Stable/--
12-Sep-2016 B+/Negative/--
Libbey Inc.
  • US$440 million term B bank loan due 2021

On April 14, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Ohio-based glassware manufacturer Libbey Inc. to 'SD' from 'CCC' after the issuer deferred an excess prepayment of about US$12 million.

On June 1, 2020, we lowered the credit ratings to 'D' after the issuer commenced Chapter 11 bankruptcy restructuring, and subsequently on June 25, 2020, the ratings were withdrawn at the issuer's request.

In 2019, the issuer derived about 41% of its revenue from the food service segment and about 32% from the retail segment. Both segments were facing a decline in demand, made worse by the looming recession and coronavirus pandemic.

Earlier, on March 19, 2020, we lowered the issuer credit rating on Libbey to 'CCC' from 'B-' on constrained liquidity and less likelihood of refinancing its term loans.

On Nov. 16, 2020, Libbey announced that it had successfully emerged from Chapter 11 by completing its financial restructuring.

Table 92

Issuer Credit Rating--Libbey Inc.
Date To
25-Jun-2020 NR/--/--
01-Jun-2020 D/--/--
14-Apr-2020 SD/NM/--
19-Mar-2020 CCC/Negative/--
25-Nov-2019 B-/Negative/--
06-Nov-2017 B/Stable/--
05-May-2017 B+/Stable/--
31-Mar-2014 BB-/Stable/--
16-Aug-2013 B+/Positive/--
04-Aug-2011 B+/Stable/--
12-Nov-2009 B/Stable/--
11-Nov-2009 SD/NM/--
11-Jun-2009 B/Watch Neg/--
24-Dec-2008 B/Negative/--
16-May-2006 B/Stable/--
NMC Health PLC
  • US$400 million 5.95% sukuk due Nov. 21, 2023

On April 14, 2020, S&P Global Ratings lowered its long-term issuer credit rating on United Arab Emirates-based health care service provider NMC Health PLC to 'D' from 'CCC-' after the issuer missed interest payments on its bank loans. An administrator was appointed by the court, after the lenders moved to court.

On May 14, 2020, we withdrew the ratings on the issuer.

Earlier, on March 3, 2020, we lowered our long-term issuer credit rating to 'CCC-' from 'BB' after the issuer announced the financial statement discrepancies and asked its lenders to support an informal standstill request.

Table 93

Issuer Credit Rating--NMC Health PLC
Date To
14-May-2020 NR/--/--
14-Apr-2020 D/--/--
03-Mar-2020 CCC-/Watch Neg/--
12-Feb-2020 BB/Watch Neg/--
15-Jan-2020 BB+/Negative/--
20-Apr-2018 BB+/Stable/--
Intelsat S.A.
  • US$2 billion 7.75% senior unsecured notes due June 1, 2021
  • US$1 billion 8.125% senior notes due June 1, 2023
  • US$750 million 12.50% senior notes due April 1, 2022
  • US$1 billion senior notes due Feb. 28, 2023
  • US$2.2 billion 7.25% guaranteed notes due Oct. 15, 2020
  • US$1.15 billion 7.50% guaranteed senior notes due April 1, 2021
  • US$2 billion 5.50% senior guaranteed notes due Aug. 1, 2023
  • US$1.25 billion senior notes due 2024
  • US$490 million 9.50% senior notes due 2022
  • US$1.8 billion 9.75% senior notes due July 15, 2025
  • US$2 billion floating rate term B-3 bank loan due Nov. 27, 2023
  • US$395 million floating rate B-4 bank loan due Jan. 2, 2024
  • US$700 million 6.625% B-5 bank loan due Jan. 2, 2024
  • US$2.95 billion notes due Oct. 15, 2024
  • US$403 million 12.5% senior unsecured notes due Nov. 15, 2024

On April 15, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Luxembourg-based telecom service provider Intelsat S.A. to 'SD' from 'CCC+' after the issuer failed to pay semiannual interest payments on unsecured debt.

On May 14, we lowered the ratings on the issuer to 'D' after it filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The issuer had also obtained a commitment for $1 billion in debtor-in-possession financing.

On June 29, 2020, S&P Global Ratings withdrew its ratings on Intelsat.

Table 94

Issuer Credit Rating--Intelsat S.A.
Date To
29-Jun-2020 NR/--/--
14-May-2020 D/--/--
15-Apr-2020 SD/NM/--
18-Jul-2018 CCC+/Negative/--
13-Jul-2018 SD/NM/--
19-Jun-2017 CCC+/Stable/--
26-Sep-2016 SD/NM/--
30-Aug-2016 CC/Watch Neg/--
15-Jul-2016 CCC/Negative/--
12-May-2016 SD/NM/--
01-Mar-2016 CCC/Negative/--
22-Feb-2016 B/Watch Neg/--
23-Mar-2015 B/Stable/--
19-Feb-2015 B+/Watch Neg/--
10-Dec-2013 B+/Stable/--
21-Nov-2013 B/Watch Pos/--
15-Feb-2008 B/Stable/--
19-Jun-2007 B+/Watch Neg/--
09-Jun-2006 BB-/Stable/--
29-Aug-2005 BB-/Watch Neg/--
03-Feb-2005 BB-/Negative/--
21-Jan-2005 BB-/Stable/--
28-Apr-2004 BBB+/Watch Neg/--
08-Mar-2004 BBB+/Negative/--
29-Oct-2003 BBB+/Stable/--
16-Jul-2003 BBB+/Negative/--
07-Feb-2003 BBB+/Stable/--
11-Dec-2002 A-/Watch Neg/--
22-Aug-2002 A/Watch Neg/--
07-Nov-2001 A/Negative/--
21-Mar-2001 A/Stable/--
O1 Properties Ltd.
  • RUB15 billion 13.00% notes due Oct. 2, 2020
  • US$350 million 8.25% notes due Sept. 27, 2021
  • US$355 million 7.00% notes due Jan. 29, 2021
  • US$150 million 6.00% notes due May 18, 2021

On April 16, 2020, S&P Global Ratings lowered the issuer credit ratings on Cyprus-based real estate market investor O1 Properties Ltd. to 'D' from 'CC' after the issuer missed a coupon payment on US$350 million Eurobonds. This nonpayment was considered a general default, and the company was not expected to be able to pay most of its obligations.

Earlier, on April 10, 2020, we lowered the rating on the issuer to 'CC' from 'CCC-' after it was unable to obtain mezzanine debt lenders' consent to extend the loan and had insufficient liquidity.

On Sept. 25, 2020, we withdrew our 'D' long-term issuer and issue credit ratings at the issuer's request. At the time of the withdrawal, our 'D' rating reflected the nonpayment of the coupon on the $350 million Eurobond in April 2020 followed by a nonpayment of its mezzanine loan. Furthermore, weak liquidity supports our view of O1 Properties' general default. We expect the company will not be able to pay most of its obligations as they come due, unless a major debt restructuring it is working on allows it to extend major debt maturities, including the $350 million Eurobond repayment due in September 2021.

Table 95

Issuer Credit Rating--O1 Properties Ltd.
Date To
25-Sep-2020 NR/--/--
16-Apr-2020 D/--/--
10-Apr-2020 CC/Negative/--
19-Feb-2020 CCC-/Watch Neg/--
07-Jun-2019 CCC/Positive/--
29-Mar-2019 CCC/Watch Dev/--
14-Dec-2018 CCC/Watch Neg/--
13-Jun-2018 B-/Watch Neg/--
12-Mar-2018 B/Watch Neg/--
20-Feb-2018 B/Negative/--
21-Jun-2017 B+/Stable/--
15-Apr-2015 B+/Negative/--
20-Jan-2015 B+/Watch Neg/--
01-Jul-2013 B+/Stable/--
J.C. Penney Co. Inc.
  • US$275 million 7.125% debenture due Nov. 15, 2023
  • US$500 million 7.625% debenture due March 1, 2097
  • US$400 million 7.40% debenture due April 1, 2037
  • US$700 million 6.375% senior notes due Oct. 15, 2036
  • US$400 million 5.65% senior notes due June 1, 2020
  • US$1.2 billion unsecured credit facility bank loan due April 7, 2010
  • US$1.688 billion floating rate term bank loan due June 23, 2023
  • US$500 million 5.875% senior notes due July 1, 2023
  • US$400 million 8.625% second-lien notes due March 15, 2025
  • US$2.35 billion asset-based revolver due June 20, 2022

On April 16, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Plano, Texas-based department store operator J.C. Penney Co. Inc. to 'D' from 'CCC' after the company announced it would not make an interest payment. The issuer has long struggled to adapt to the business model in a challenging domestic department store space, which shrank further because of the coronavirus pandemic

On July 2, 2020, we withdrew our ratings on the issuer after it filed for reorganization under Chapter 11.

Table 96

Issuer Credit Rating--J.C. Penney Co. Inc.
Date To
02-Jul-2020 NR/--/--
16-Apr-2020 D/--/--
28-Aug-2019 CCC/Negative/--
05-Mar-2019 CCC+/Negative/--
17-Aug-2018 B-/Negative/--
23-May-2018 B/Negative/--
31-Oct-2017 B+/Negative/--
12-Oct-2017 B+/Stable/--
13-Mar-2017 B+/Positive/--
30-Mar-2016 B/Positive/--
26-Feb-2016 CCC+/Watch Pos/--
22-Apr-2015 CCC+/Positive/--
03-Mar-2014 CCC+/Stable/--
28-Feb-2013 CCC+/Negative/--
09-Nov-2012 B-/Stable/--
11-Jul-2012 B+/Negative/--
17-May-2012 BB-/Watch Neg/--
07-Mar-2012 BB/Stable/--
07-Apr-2010 BB+/Stable/--
16-Apr-2009 BB/Stable/--
05-Feb-2009 BBB-/Watch Neg/--
07-Nov-2008 BBB-/Negative/--
15-Nov-2007 BBB-/Stable/--
26-Apr-2007 BBB-/Positive/--
06-Apr-2006 BBB-/Stable/--
17-Feb-2006 BB+/Watch Pos/--
08-Mar-2005 BB+/Positive/--
02-Aug-2004 BB+/Stable/--
29-May-2003 BB+/Negative/--
05-Oct-2000 BBB-/Negative/--
04-May-2000 BBB/Negative/--
06-Mar-2000 BBB+/Watch Neg/--
01-Jun-1999 BBB+/Stable/--
08-Jan-1999 A/Watch Neg/--
01-May-1998 A/Negative/--
08-Jan-1998 A/Watch Neg/--
29-Jan-1997 A/Stable/--
04-Nov-1996 A+/Watch Neg/--
26-Apr-1996 A+/Negative/--
13-Jan-1993 A+/Stable/--
06-Aug-1991 A+/Negative/--
08-Nov-1989 A+/Stable/--
28-Sep-1988 A+/Negative/--
01-May-1980 A+/Stable/--
26-Jun-1970 AA/-/--
08-Jul-1968 A+/-/--
Mister Car Wash Holdings Inc.
  • US$800 million floating rate first-lien term bank loan due May 14, 2026
  • US$75 million floating rate revolver bank loan due May 14, 2024
  • US$225 second-lien secured bank loan due April 14, 2027

On April 17, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Arizona-based retailer Mister Car Wash Holdings Inc. to 'SD' from 'CCC+'. The issuer amended its lender group, which allowed it to make payment-in-kind (PIK) interest payments for three quarters on second-lien term debt.

On April 20, 2020, we raised the rating to 'CCC+' on account of liquidity the company maintained.

Earlier, on April 2, 2020, we lowered our long-term issuer credit rating to 'CCC+' from 'B-' because of weaker operating performance projections in 2020 owing to the coronavirus pandemic.

Table 97

Issuer Credit Rating--Mister Car Wash Holdings Inc.
Date To
20-Apr-2020 CCC+/Negative/--
17-Apr-2020 SD/NM/--
02-Apr-2020 CCC+/Negative/--
02-Dec-2016 B-/Stable/--
22-Apr-2016 B/Stable/--
09-Sep-2014 B-/Stable/--
Ultra Petroleum Corp.
  • US$700 million 6.875% senior notes due 2022
  • US$500 million 7.125% senior notes due 2025
  • US$975 million floating rate RBL term bank loan due April 12, 2024
  • US$400 million floating rate revolver bank loan due Jan. 12, 2022
  • US$572 million 9.00% cash/2.00% pay-in-kind second-lien notes due July 12, 2024

On April 17, 2020, S&P Global Ratings lowered the issuer credit ratings on Texas-based oil and gas exploration and production company Ultra Petroleum Corp. to 'D' from 'CCC-' after the issuer announced it would not be making interest payments of about US$13.2 million due on April 15, 2020, and entered into a 30-day grace period.

On Sept. 14, 2020, we withdrew our ratings on the company.

Table 98

Issuer Credit Rating--Ultra Petroleum Corp.
Date To
14-Sep-2020 NR/--/--
17-Apr-2020 D/--/--
25-Sep-2019 CCC-/Negative/--
21-Mar-2019 CCC+/Negative/--
02-Jan-2019 SD/NM/--
18-Oct-2018 CC/Negative/--
14-Sep-2018 CCC+/Negative/--
17-May-2018 B/Negative/--
16-Mar-2017 B+/Stable/--
05-May-2016 NR/--/--
04-Apr-2016 D/--/--
03-Mar-2016 CC/Negative/--
01-Feb-2016 CCC-/Negative/--
02-Oct-2015 B+/Negative/--
30-Apr-2015 BB/Negative/--
02-Dec-2013 BB/Stable/--
Engine Holding LLC
  • US$174 million floating rate first-lien term loan bank loan due Sept. 15, 2022
  • US$35 million floating rate revolver bank loan due Sept. 15, 2022
  • US$50 million floating rate second-lien term loan bank loan due Sept. 15, 2023

On April 21, 2020, S&P Global Ratings lowered the long-term issuer credit ratings on New Jersey-based advertising agency Engine Holding LLC to 'D' from 'CCC-' after the issuer entered into a forbearance agreement with its lenders on its failure to pay the debt interest and principal payments for the first quarter of 2020.

On May 11, 2020, we withdrew the ratings at the issuer's request.

Earlier, on Feb. 7, 2020, we lowered the long-term issuer credit rating to 'CCC-' from 'CCC' after it reported some operational missteps, resulting in a covenant violation. It also reported weak financial performance over the past 12 months that was insufficient to meet the net leverage covenant ratio as of Dec. 31, 2019, and increased the risk of payment default.

Table 99

Issuer Credit Rating--Engine Holding LLC
Date To
11-May-2020 NR/--/--
21-Apr-2020 D/--/--
07-Feb-2020 CCC-/Negative/--
28-Jan-2019 CCC/Negative/--
19-Nov-2018 CCC+/Negative/--
Neiman Marcus Group Ltd. LLC
  • US$125 million 7.125% senior debenture due June 1, 2028
  • US$550 million 8.00% second-lien notes due April 25, 2024
  • US$730.534 million 8.00% third-lien notes due Oct. 25, 2024
  • US$497.849 million 8.75% third-lien notes due Oct. 25, 2024
  • US$2.775 billion floating rate extended bank loan due Oct. 25, 2023
  • US$12.697 million floating rate term bank loan due Oct. 25, 2020
  • US$960 million 8.00% cash pay notes due Oct. 15, 2021
  • US$600 million 8.75% pay-in-kind toggle notes due Oct. 15, 2021

On April 22, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Massachusetts-based department store operator Neiman Marcus Group Ltd. LLC to 'D' from 'CCC-' after the issuer missed paying interest due on unsecured notes maturing October 2021. The issuer is facing challenges in adapting to the ongoing changes in the department store sector.

On July 2, 2020, S&P Global Ratings withdrew its ratings on the issuer.

Earlier, on April 14, 2020, we lowered the issuer credit ratings on the company to 'CCC-' from 'CCC' as it was contending with the disruption and recessionary conditions stemming from the coronavirus pandemic, the challenging trends facing department stores, and an unsustainable capital structure.

On Sept. 25, 2020, Neiman Marcus Holding Company Inc. (formerly the Neiman Marcus Group Ltd. LLC) announced that it emerged from voluntary Chapter 11.

Table 100

Issuer Credit Rating--Neiman Marcus Group Ltd. LLC
Date To
02-Jul-2020 NR/--/--
22-Apr-2020 D/--/--
14-Apr-2020 CCC-/Negative/--
14-Jun-2019 CCC/Negative/--
Northwest Acquisitions ULC
  • US$200 million floating rate revolver bank loan due Nov. 1, 2021
  • US$550 million 7.125% second-lien notes due Nov. 1, 2022

On April 23, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Canadian diamond company Northwest Acquisitions ULC to 'D' from 'CCC+' after the issuer's subsidiary, Dominion Diamond Mines ULC, announced filing for insolvency protection under The Companies' Creditors Arrangement Act. The coronavirus pandemic-related business disruption (i.e., diamond sales and marketing) affected the cash flow of the issuer.

On May 25, 2020, S&P Global Ratings withdrew its credit ratings on the issuer.

Earlier, on Dec. 5, 2019, we lowered the rating on the company to 'CCC+' from 'B' because it was facing heightened risk in addressing the US$550 million secured notes maturing in November 2022.

Table 101

Issuer Credit Rating--Northwest Acquisitions ULC
Date To
25-May-2020 NR/--/--
23-Apr-2020 D/--/--
05-Dec-2019 CCC+/Negative/--
18-Jun-2019 B/Watch Neg/--
13-Dec-2018 B+/Negative/--
02-Oct-2017 B+/Stable/--
Diamond Offshore Drilling Inc.
  • US$500 million 5.70% senior notes due Oct. 15, 2039
  • US$750 million 4.875% senior unsecured notes due Nov. 1, 2043
  • US$250 million 3.45% senior unsecured notes due Nov. 1, 2023
  • US$1.4 billion unsecured revolver bank loan due Oct. 22, 2020
  • US$500 million 7.875% senior notes due Aug. 15, 2025
  • US$950 million floating rate revolver bank loan due Oct. 2, 2023

On April 24, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Texas-based contract drilling services Diamond Offshore Drilling Inc. to 'D' from 'CC' after a review of market conditions for contract drilling services. It is expected that North American and international markets are likely to contract up to 50% and 20%, respectively.

On June 11, 2020, S&P Global Ratings withdrew its credit ratings on the issuer.

Earlier, on April 16, 2020, we lowered our long-term issuer credit rating on Diamond Offshore Drilling to 'CC' from 'CCC+' after the issuer missed an interest payment due on April 15 on the senior notes due 2039, and hired advisers to evaluate alternatives for its capital restructuring.

Table 102

Issuer Credit Rating--Diamond Offshore Drilling Inc.
Date To
11-Jun-2020 NR/--/--
24-Apr-2020 D/--/--
16-Apr-2020 CC/Negative/--
25-Sep-2019 CCC+/Stable/--
30-Aug-2018 B/Negative/--
18-Oct-2017 B+/Negative/--
30-Jan-2017 BB-/Negative/--
01-Nov-2016 BB+/Negative/--
26-Jul-2016 BBB/Negative/--
18-Nov-2015 BBB+/Negative/--
10-Apr-2015 BBB+/Stable/--
08-Dec-2014 A-/Negative/--
15-Aug-2014 A/Negative/--
17-Dec-2013 A/Stable/--
26-Nov-2013 A-/Watch Pos/--
27-Jul-2004 A-/Stable/--
17-Oct-2003 A/Watch Neg/--
22-Apr-1998 A/Stable/--
17-Sep-1997 A-/Watch Pos/--
29-Jan-1997 A-/Stable/--
Enjoy S.A.
  • US$300 million 10.50% notes due May 16, 2022

On April 24, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Chilean casino operator Enjoy S.A. to 'D' from 'B-' after the company announced suspension of its shareholder meeting to treat a capital increase while the board decided to file for judicial reorganization. The issuer's financial and operational situation had worsened because of the coronavirus pandemic.

Table 103

Issuer Credit Rating--Enjoy S.A.
Date To
24-Apr-2020 D/--/--
23-Mar-2020 B-/Watch Neg/--
23-Dec-2019 B-/Negative/--
28-Nov-2019 B-/Watch Neg/--
16-Aug-2019 B/Negative/--
31-Jan-2018 B/Stable/--
25-Aug-2017 B-/Watch Pos/--
11-May-2017 B-/Positive/--
Envision Healthcare Corp.
  • US$5.45 billion floating rate first-lien term bank loan due Oct. 10, 2025
  • US$300 million floating rate revolving bank loan due Oct. 11, 2023
  • US$1.225 billion 8.75% notes due Oct. 15, 2026
  • US$525 million senior unsecured term bank loan due Oct. 11, 2026
  • US$550 million asset-based revolver due Oct. 11, 2023

On April 28, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Delaware-based physician staffing and ambulatory services company Envision Healthcare Corp. to 'SD' from 'CC' after the settlement of its debt exchange offer on the notes due in 2026 and offering on 53-55 cents on the dollar for the new secured term debt.

On May 4, 2020, we raised the credit ratings to 'CCC' from 'SD' after the reduction of debt by approximately US$329 million.

Table 104

Issuer Credit Rating--Envision Healthcare Corp.
Date To
04-May-2020 CCC/Negative/--
28-Apr-2020 SD/NM/--
06-Apr-2020 CC/Negative/--
18-Nov-2019 B/Negative/--
17-Sep-2018 B+/Negative/--
11-Jun-2018 BB-/Watch Neg/--
14-Jun-2017 BB-/Positive/--
25-Nov-2014 NR/--/--
12-May-2014 BB-/Stable/--
06-Aug-2013 B+/Positive/--
04-Apr-2011 B+/Stable/--
21-Jan-2011 BB/Watch Neg/--
11-Nov-2009 BB/Stable/--
31-Oct-2008 BB-/Stable/--
11-Jan-2005 B+/Stable/--
CSM Bakery Solutions LLC
  • US$210 million floating rate second-lien term bank loan due July 3, 2021
  • US$850 million floating rate first-lien term bank loan due July 3, 2020
  • US$125 million asset-based revolver bank loan due July 3, 2020

On April 29, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Kansas-based consumer products supplier CSM Bakery Solutions LLC to 'SD' from 'CCC' after the issuer executed an amendment to extend the maturity of its US$105 million asset-based lending and has not completed refinancing of its first-lien term loan due July 2020. The coronavirus pandemic-related impact has further weakened the operational performance and financial results.

On June 24, 2020, we raised the credit ratings on the issuer to 'CCC+' from 'SD' after it extended the maturities on all its loans to 2021 and 2022, which helps CSM maintain liquidity for its operation over the next 12 months.

Table 105

Issuer Credit Rating--CSM Bakery Solutions LLC
Date To
24-Jun-2020 CCC+/Negative/--
29-Apr-2020 SD/NM/--
21-Jun-2019 CCC/Negative/--
06-Dec-2018 CCC+/Stable/--
31-Aug-2017 CCC+/Positive/--
21-Nov-2016 CCC+/Negative/--
21-Sep-2016 B/Negative/--
17-May-2013 B/Stable/--
Virgin Australia Holdings Ltd.
  • US$350 million 7.875% notes due Oct. 15, 2021
  • A$150 million 8.25% medium-term notes due May 30, 2023
  • A$250 million 8.075% medium-term notes senior second due March 5, 2024
  • US$425 million 8.125% callable notes due Nov. 15, 2024
  • A$325 million 8.00% senior unsecured notes due Nov. 26, 2024

On April 30, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Australia-based airline company Virgin Australia Holdings Ltd. to 'D' from 'CC' after the company filed for Chapter 15 bankruptcy and announced it would not pay the coupon on its US$425 million senior unsecured notes because of a moratorium on all creditor payments.

Earlier, on April 21, 2020, we lowered the rating on the issuer to 'CC' from 'CCC' after it announced entering into a voluntary administration to undertake a proposed debt restructuring and recapitalization of the business. The company's credit quality deteriorated with the pressure on airlines' cash flows and liquidity due to the coronavirus pandemic.

On Dec. 9, 2020, S&P Global Ratings withdrew its 'D' issuer credit rating at the issuer's request.

Table 106

Issuer Credit Rating--Virgin Australia Holdings Ltd.
Date To
09-Dec-2020 NR/--/--
30-Apr-2020 D/--/--
21-Apr-2020 CC/Negative/--
26-Mar-2020 CCC/Watch Dev/--
16-Mar-2020 B-/Watch Neg/--
28-Feb-2020 B+/Negative/--
25-Jun-2017 B+/Stable/--
31-Mar-2016 B+/Negative/--
09-Nov-2014 B+/Stable/--
J. Crew Group Inc.
  • US$250 million 13.00% senior notes due Sept. 15, 2021
  • US$1.567 billion floating rate term loan B bank loan due March 5, 2021
  • US$375 asset based revolver first-lien guaranteed senior secured due Nov. 17, 2021
  • US$250 million 13.00% senior notes due Sept. 15, 2021

On May 4, 2020, S&P Global Ratings lowered its long-term issuer credit rating on New York-based apparel retailer J. Crew Group Inc. to 'D' from 'CCC-' following the company's announced petitions filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The issuer reached an agreement with 78% of its intellectual property notes lender and 71% of its term loan lenders to exchange around US$1.65 billion of debt for equity.

On July 7, 2020, we withdrew our long-term issuer credit rating at the issuer's request.

Table 107

Issuer Credit Rating--J. Crew Group Inc.
Date To
07-Jul-2020 NR/--/--
04-May-2020 D/--/--
18-Sep-2019 CCC-/Negative/--
26-Mar-2019 CCC/Negative/--
14-Jul-2017 CCC+/Negative/--
12-Jul-2017 SD/NM/--
14-Jun-2017 CC/Negative/--
13-Dec-2016 CCC-/Negative/--
02-Sep-2015 B-/Negative/--
05-Dec-2014 B-/Stable/--
28-Oct-2013 B/Negative/--
20-Sep-2013 B/Stable/--
04-Apr-2013 B/Positive/--
11-Jun-2012 B/Stable/--
05-Dec-2011 B/Negative/--
31-Jan-2011 B/Stable/--
23-Nov-2010 BB-/Watch Neg/--
02-Apr-2010 BB+/Stable/--
08-Dec-2009 BB-/Positive/--
08-Apr-2009 BB-/Stable/--
31-Oct-2007 BB-/Positive/--
23-Mar-2007 B+/Positive/--
17-Jul-2006 B+/Stable/--
15-Dec-2005 B/Watch Pos/--
19-Aug-2005 B-/Watch Pos/--
22-Dec-2004 B-/Positive/--
08-May-2003 B-/Negative/--
08-May-2003 SD/NM/--
14-Apr-2003 CC/Watch Neg/--
03-Jun-2002 B-/Negative/--
30-Nov-2001 B/Negative/--
01-Oct-2001 B/Stable/--
06-Jul-2000 B/Positive/--
22-May-1998 B/Negative/--
26-Sep-1997 B+/Negative/--
Evergreen Skills Lux S.ar.l.
  • US$1.365 billion floating rate first-lien term bank loan due April 28, 2021
  • US$80 million floating rate revolving bank loan due Oct. 28, 2020
  • US$670 million floating rate second-lien term bank loan due April 28, 2022

On May 5, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Luxembourg-based e-learning/training content software provider Evergreen Skills Lux S.ar.l. to 'D' from 'CCC-'. The company entered into a forbearance agreement with its senior debt lenders and is expected to pursue a debt restructuring.

On June 5, 2020, we withdrew our ratings on the issuer.

Table 108

Issuer Credit Rating--Evergreen Skills Lux S.ar.l.
Date To
05-Jun-2020 NR/--/--
05-May-2020 D/--/--
15-May-2019 CCC-/Negative/--
24-Sep-2018 CCC+/Stable/--
17-Sep-2014 B-/Stable/--
Techniplas LLC

On May 6, 2020, Techniplas LLC filed for Chapter 11 protection under the U.S. Bankruptcy Code with a bondholders' offer of US$105 million, which involves exchanging equity for debt. The issuer's business had been suffering and further deteriorated due to the coronavirus pandemic. S&P Global Ratings had previously withdrawn its ratings on Techniplas.

Table 109

Issuer Credit Rating--Techniplas LLC
Date To
29-Oct-2019 NR/--/--
12-Apr-2019 CCC+/Negative/--
06-Feb-2019 B-/Watch Neg/--
17-Oct-2017 B-/Stable/--
25-Apr-2016 B/Negative/--
24-Apr-2015 B/Stable/--
13-Feb-2015 NR/--/--
16-Jan-2015 B/Stable/--
Hertz Global Holdings Inc.
  • US$500 million 7.375% senior notes due Jan. 15, 2021
  • US$500 million 6.25% senior notes due Oct. 15, 2022
  • US$700 million 5.875% senior notes due Oct. 15, 2020
  • US$700 million floating rate term loan B due June 30, 2023
  • US$1.7 billion floating rate revolver bank loan due June 30, 2021
  • US$500 million 5.50% senior notes due 2024
  • US$1.25 billion 7.625% second-lien notes due June 1, 2022
  • US$500 million 7.125% notes due Aug. 1, 2026
  • US$900 million 6.00% notes due Jan. 15, 2028
  • €225 million 4.125% senior notes due Oct. 15, 2021
  • €500 million senior notes due 2023
  • US$250 million 7.00% senior unsecured notes due Jan. 15, 2028
  • US$200 million first-lien senior secured revolver due June 30, 2021

On May 7, 2020, S&P Global Ratings lowered its long-term issuer credit rating on New Jersey-based vehicle renting and leasing service provider Hertz Global Holdings Inc. to 'SD' from 'CCC-' after the issuer missed lease payments on some of its asset-backed securities. The majority of the company's revenue comes from airports, depending on airline passenger travel, which has declined sharply because of the pandemic. This caused high liquidity constraints for Hertz.

On May 27, 2020, we lowered our ratings on the issuer to 'D' from 'SD' after it filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code, and subsequently on June 26, 2020, we withdrew our credit ratings.

Table 110

Issuer Credit Rating--Hertz Global Holdings Inc.
Date To
26-Jun-2020 NR/--/--
27-May-2020 D/--/--
07-May-2020 SD/NM/--
27-Apr-2020 CCC-/Watch Neg/--
21-Apr-2020 B-/Watch Neg/--
16-Mar-2020 B+/Watch Neg/--
19-Nov-2012 B+/Stable/--
27-Aug-2012 B+/Watch Neg/--
22-Dec-2011 B+/Stable/--
09-May-2011 B+/Watch Neg/--
20-Dec-2010 B+/Stable/--
26-Apr-2010 B/Watch Pos/--
27-Oct-2009 B/Positive/--
22-May-2009 B/Negative/--
Petra Diamonds Ltd.
  • US$650 million 7.25% second-lien notes due May 1, 2022
  • ZAR500 unsecured revolver bank loan due Nov. 13, 2020

On May 8, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Bermuda-based diamond miner Petra Diamonds Ltd. to 'D' from 'CCC+' following the issuer's announcement to enter into a grace period of 30 days for interest payment on it US$650 million debt.

Earlier, on Feb. 27, 2020, we revised our outlook on the issuer to negative from stable because of high refinancing risks given the high leverage and significant portion of debt maturing in 2022.

Table 111

Issuer Credit Rating--Petra Diamonds Ltd.
Date To
08-May-2020 D/--/--
27-Feb-2020 CCC+/Negative/--
30-Oct-2019 CCC+/Stable/--
25-Feb-2019 B-/Stable/--
26-Feb-2018 B/Negative/--
13-Oct-2017 B/Stable/--
04-Aug-2017 B+/Negative/--
27-Feb-2017 B+/Stable/--
15-Feb-2016 B+/Negative/--
15-May-2015 B+/Stable/--
Avianca Holdings S.A.
  • US$550 million 8.375% notes due May 10, 2020
  • US$550 million 9.00% notes due May 10, 2023
  • US$495 million floating rate first-lien bank loan due Aug. 18, 2022

On May 11, 2020, S&P Global Ratings lowered its issuer credit rating on Colombia-based air transportation company Avianca Holdings S.A. to 'D' from 'CCC-' after the issuer and its subsidiaries and affiliates voluntarily filed for bankruptcy under Chapter 11 in New York to preserve its business structure amid the severe impact of COVID-19 on the global air transportation industry. This also followed the issuer's missed $65.6 million principal payment on its 8.375% unsecured notes due on May 10, 2020.

Earlier, on May 5, 2020 we lowered the issuer credit rating on Avianca to 'CCC-' from 'CCC' and kept the ratings on CreditWatch with negative implications. The CreditWatch negative reflected Avianca's weakening liquidity and that the absence of extraordinary financial support from shareholders or the Colombian government could force the company to default on the repayment of its 8.375% senior unsecured notes due 2020.

Table 112

Issuer Credit Rating--Avianca Holdings S.A.
Date To
11-May-2020 D/--/--
05-May-2020 CCC-/Watch Neg/--
20-Mar-2020 CCC/Watch Neg/--
20-Dec-2019 B-/Stable/--
23-Jul-2019 SD/NM/--
13-May-2019 CCC+/Watch Neg/--
13-Apr-2016 B/Stable/--
05-May-2015 B+/Stable/--
28-Mar-2014 B+/Positive/--
25-Apr-2013 B+/Stable/--
Yihua Enterprise (Group) Co. Ltd.

On May 11, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Chinese furniture maker Yihua Enterprise (Group) Co. Ltd. to 'SD' from 'CCC' after the issuer failed to make interest payment on its domestic medium-term notes due 2022. Subsequently, we withdrew the ratings due to insufficient information.

Table 113

Issuer Credit Rating--Yihua Enterprise (Group) Co. Ltd.
Date To
11-May-2020 NR/--/--
11-May-2020 SD/NM/--
26-Jul-2019 CCC/Negative/--
17-Apr-2019 B-/Negative/--
26-Jul-2018 B/Negative/--
11-Sep-2017 B/Stable/--
Fieldwood Energy LLC
  • US$517.5 million floating rate second-lien term bank loan due April 11, 2023
  • US$1.143 billion floating rate first-lien term bank loan due April 11, 2022

On May 12, 2020, S&P Global Ratings lowered the issuer credit rating on Texas-based oil and gas exploration and production company Fieldwood Energy LLC to 'D' from 'CCC' after the issuer failed to make the interest payments on its first- and second-lien term loans.

On June 17, 2020, we withdrew the ratings on the issuer.

Earlier, on April 8, 2020, we lowered the issuer credit rating on Fieldwood to 'CCC' from 'B-', reflecting the issuer's weak credit metrics, constrained liquidity, and the potential that it may breach covenants on its first-lien term loan.

On Sept. 21, 2020, S&P Global Ratings assigned its point-in-time 'BB-' issue-level rating to the $100 million debtor-in-possession facility provided to Fieldwood, which filed for Chapter 11 protection under the U.S. Bankruptcy Code on Aug. 3, 2020.

Table 114

Issuer Credit Rating--Fieldwood Energy LLC
Date To
17-Jun-2020 NR/--/--
12-May-2020 D/--/--
08-Apr-2020 CCC/Negative/--
23-Apr-2018 B-/Stable/--
03-Jan-2018 D/--/--
16-Jun-2016 CCC/Negative/--
13-Jun-2016 SD/NM/--
06-May-2016 CC/Negative/--
09-Feb-2016 CCC/Negative/--
02-Oct-2015 B/Negative/--
10-Sep-2013 B/Stable/--
Revlon Inc.
  • US$500 million 5.75% senior unsecured notes due Feb. 15, 2021
  • US$1.8 billion floating rate term B bank loan due Sept. 7, 2023
  • US$450 million 6.25% notes due 2024
  • US$200 million first-lien guaranteed senior secured term loan due Aug. 6, 2023
  • US$400 million first-lien guaranteed senior secured term loan due Sept. 7, 2021

On May 12, 2020, S&P Global Ratings lowered the issuer credit rating on New York-based beauty and personal care manufacturer and distributor Revlon Inc. to 'SD' from 'CC' after the issuer completed refinancing its 2016 term loan. We considered the transaction as distressed given the company's weak operating performance, negative cash flow generation, and near-term debt maturities.

On June 4, 2020, we raised the issuer credit rating to 'CCC-' from 'SD', reflecting our view of the company's still unsustainable capital structure, very high debt service burden, and weak liquidity.

Earlier, on April 22, 2020, we lowered our issuer credit rating on Revlon to 'CC' from 'CCC-' after the company announced it was pursuing a recapitalization transaction to extend the maturity of its existing 2016 $1.8 billion term loan, term out its unrated $200 million term loan issued in 2019, and enhance its liquidity position.

On July 28, 2020, we lowered the issuer credit rating to 'CC' from 'CCC- 'following the company's announcement that it commenced an offer to exchange any and all of its outstanding amounts of 5.75% notes due February 2021 for a combination of new 5.75% notes due February 2024 and an early tender/consent fee. The holders of the existing notes will receive $750 principal amount of the new notes for every $1,000 of existing notes, and $50 of cash as a consent fee if they agree to an early tender.

On Nov. 19, 2020, we lowered our issuer credit rating to 'SD' from 'CC 'as the company completed its previously announced 5.75% senior notes exchange. Noteholders validly tendered about 69% of the total outstanding principal amount of the notes through the exchange. The company instructed the trustee to give a notice of optional redemption to redeem the remaining balance on Dec. 14, 2020. We considered the transaction to be a distressed exchange and tantamount to a default on the notes because the noteholders were not adequately compensated and received less than they were originally promised under the securities. We also incorporated the company's weak operating performance, negative cash flow generation, and near-term debt maturities.

On Dec. 9, 2020, we raised our issuer credit rating on Revlon to 'CCC-' from 'SD' after it completed its previously announced 5.75% senior notes exchange, which we viewed as a distressed restructuring. The negative outlook reflects our view of the company's unsustainable capital structure and heavy debt service burden, and our belief that Revlon could default on its debt obligations in the upcoming quarters.

Table 115

Issuer Credit Rating--Revlon Inc.
Date To
08-Dec-2020 CCC-/Negative/--
19-Nov-2020 SD/NM/--
28-Jul-2020 CC/Negative/--
04-Jun-2020 CCC-/Negative/--
12-May-2020 SD/NM/--
22-Apr-2020 CC/Negative/--
25-Mar-2020 CCC-/Negative/--
13-Feb-2020 CCC+/Watch Neg/--
16-May-2018 CCC+/Negative/--
06-Feb-2018 CCC+/Stable/--
16-Nov-2017 B-/Negative/--
10-Jul-2017 B/Stable/--
14-Jul-2016 B+/Negative/--
Outerstuff LLC
  • US$155 million floating rate first-lien term bank loan due July 28, 2021
  • US$100 million floating rate revolver bank loan due March 29, 2024

On May 13, 2020, S&P Global Ratings lowered the issuer credit rating on New York-based youth licensed sports apparel maker Outerstuff LLC to 'SD' from 'CCC'. The downgrade came after the issuer failed to make the term loan principal and interest payment due March 31 and subsequently decided to enter into a forbearance agreement with lenders on April 6. As per the forbearance agreement, the term loan and ABL lenders agreed to not exercise or enforce certain remedies with respect to this nonpayment for 60 days, ending May 31, 2020. We treated this as distressed because the issuer did not meet its contractual obligation to pay principal and interest in a timely manner, and did not adequately compensate lenders for agreeing to temporarily waive their rights.

On Dec. 8, 2020, we raised our rating on Outerstuff to 'CCC' from 'SD', reflecting its restructured debt and licensing agreements, though it still has high leverage and less than adequate liquidity. Outerstuff reached an agreement with its lenders to extend its term loan maturity to December 2023 and paid its lenders the principal and interest it missed in March, June, and September 2020. The negative outlook reflects that we could lower the rating on Outerstuff if operating underperformance continues to pressure liquidity such that we believe a default is inevitable within the subsequent six months.

Table 116

Issuer Credit Rating--Outerstuff LLC
Date To
08-Dec-2020 CCC/Negative/--
13-May-2020 SD/NM/--
09-Dec-2019 CCC/Negative/--
30-May-2019 CCC+/Negative/--
09-Apr-2019 B-/Stable/--
26-Feb-2019 B-/Watch Neg/--
20-Jul-2018 B/Negative/--
04-Dec-2017 B/Stable/--
08-Jul-2014 B+/Stable/--
Extraction Oil & Gas Inc.
  • US$350 million senior notes due 2024
  • US$600 million 5.625% senior notes due Feb. 01, 2026
  • US$950 million reserve-based revolver first-lien guaranteed senior secured due Aug. 16, 2022

On May 15, 2020, S&P Global Ratings lowered its issuer credit rating on Colorado-based oil and gas exploration and production company Extraction Oil & Gas Inc. to 'D' from 'CC' after the issuer missed the interest payment on its 7.375% senior notes due 2024.

On May 27, 2020, we withdrew all the ratings on Extraction Oil & Gas Inc., including the 'D' issuer credit rating, at the company's request.

Earlier, on May 13, 2020, we lowered our issuer credit rating and senior unsecured issue-level ratings on Extraction to 'CC' from 'CCC+', reflecting the increased likelihood that the issuer would enter a debt restructuring that we would view as distressed in the near term.

Table 117

Issuer Credit Rating--Extraction Oil & Gas Inc.
Date To
27-May-2020 NR/--/--
15-May-2020 D/--/--
13-May-2020 CC/Negative/--
03-Apr-2020 CCC+/Negative/--
19-Dec-2019 B-/Negative/--
23-Sep-2019 B/Negative/--
18-Oct-2016 B/Stable/--
Forum Energy Technologies Inc.
  • US$400 million 6.25% notes due Oct. 1, 2021
  • US$300 reserve-based revolver first-lien guaranteed senior secured due July 1, 2021

On May 15, 2020, S&P Global Ratings lowered the issuer credit rating on Texas-based oilfield products and services provider Forum Energy Technologies Inc. to 'SD' from 'CC'. The rating action followed the company's exchange of about $58.3 million in aggregate principal amount of its senior unsecured notes for $23.3 million in cash, or a 60% discount to par value. We treat this transaction as distressed since the investors did not receive the originally promised amount.

On June 18, 2020, we raised the issuer credit rating on Forum to 'CCC-' from 'SD', reflecting our forward-looking opinion on its creditworthiness.

On July 7, 2020, we lowered the issuer credit rating on Forum to 'CC' from 'CCC-' following the issuer's announcement to exchange its remaining $328 million of 6.25% senior unsecured notes due October 2021.

On Aug. 4, 2020, we lowered our issuer credit rating on Forum to 'SD' from 'CC' as the company closed on its previously announced debt exchange for the majority of its 6.25% senior unsecured notes due in October 2021. We consider the exchange distressed and tantamount to default because, in our view, the transaction offers less than the original promise for the security.

On Aug. 19, 2020, we raised our issuer credit rating on Forum to 'CCC+' from 'SD' following the completion of its debt exchange for the majority of its 6.25% senior unsecured notes due 2021. The company exchanged $315 million of its existing unsecured notes for new 9% convertible secured notes due 2025, which we considered less than the original promise and tantamount to default. The outlook is negative, reflecting the company's unsustainable leverage and the risk that liquidity could deteriorate without an improvement in sector conditions.

Table 118

Issuer Credit Rating--Forum Energy Technologies Inc.
Date To
19-Aug-2020 CCC+/Negative/--
04-Aug-2020 SD/NM/--
07-Jul-2020 CC/Negative/--
18-Jun-2020 CCC-/Negative/--
15-May-2020 SD/NM/--
15-Apr-2020 CC/Negative/--
03-Apr-2020 CCC/Negative/--
28-Aug-2019 B-/Negative/--
11-Jun-2019 B/Negative/--
07-Mar-2018 B/Stable/--
19-May-2016 B/Negative/--
29-Feb-2016 B+/Stable/--
25-Sep-2013 BB/Stable/--
Aeropuertos Argentina 2000 S.A.
  • US$400 million 6.875% bonds due Feb. 1, 2027
  • US$350 million variable-rate notes due 2027

On May 19, 2020, S&P Global Ratings lowered the issuer credit rating on Argentine airport operator Aeropuertos Argentina S.A. 2000 to 'SD' from 'CC'. The rating action followed the issuer's exchange of its senior secured notes due 2027 for the new notes, including the PIK of the four quarterly principal and interest payments in the next 12 months, which are repaid pro rata during the remaining term of the notes. We consider this exchange as tantamount to default.

On May 21, 2020, after the settlement of the exchange, we raised the issuer credit rating to 'CCC+' from 'SD'.

On Sept. 18, 2020, we placed the issuer credit ratings on CreditWatch with negative implications after Argentina's central bank tightened foreign exchange accessing regulations.

Table 119

Issuer Credit Rating--Aeropuertos Argentina 2000 S.A.
Date To
18-Sep-2020 CCC+/Watch Neg/--
21-May-2020 CCC+/Negative/--
19-May-2020 SD/NM/--
29-Apr-2020 CC/Negative/--
30-Aug-2019 B-/Negative/--
20-Aug-2019 B/Negative/--
13-Nov-2018 B+/Stable/--
03-Sep-2018 BB-/Watch Neg/--
30-Oct-2017 BB-/Stable/--
04-Apr-2017 B+/Stable/--
03-Feb-2016 B-/Stable/--
18-Jun-2014 CCC-/Negative/--
13-Sep-2013 CCC+/Negative/--
01-Nov-2012 B-/Negative/--
24-Apr-2012 B/Negative/--
26-Nov-2010 B/Stable/--
Takko Fashion S.a.r.l.
  • €225 million floating rate notes due Nov. 15, 2023
  • €285 million 5.375% notes due Nov. 15, 2023

On May 19, 2020, S&P Global Ratings lowered its issuer credit rating on German value retailer Takko Fashion S.a.r.l. to 'SD' from 'CCC+' after the company missed interest payment on its €510 million senior secured notes due November 2023.

Earlier, on April 22, 2020, we lowered our issuer credit rating on Takko to 'CCC+' from 'B-', reflecting our view that the group's ability to service its financial commitments could be further strained.

On Aug. 19, 2020, we raised the issuer credit rating to 'CCC-' from 'SD' after the issuer resumed interest payments on senior secured notes issued by its subsidiary.

Table 120

Issuer Credit Rating--Takko Fashion S.a.r.l.
Date To
19-Aug-2020 CCC-/Negative/--
19-May-2020 SD/NM/--
22-Apr-2020 CCC+/Negative/--
21-Dec-2018 B-/Stable/--
10-Oct-2018 B/Negative/--
13-Nov-2017 B/Stable/--
24-Oct-2017 CCC+/Watch Pos/--
22-Dec-2014 CCC+/Stable/--
30-Oct-2014 B-/Stable/--
27-Mar-2014 B/Negative/--
15-Mar-2013 B/Stable/--
Downstream Development Authority
  • US$270 million 10.50% notes due Feb. 15, 2023
  • US$285 million senior secured notes due Oct. 15, 2025

On May 20, 2020, S&P Global Ratings lowered its issuer credit rating on Oklahoma-based casino resort operator Downstream Development Authority (DDA) to 'SD' from 'CCC'. DDA's term loan waiver agreement is equivalent to a default, even though no legal default has occurred under the provisions of the term loan, because the timing of the payments was delayed relative to the terms of the original agreement.

On May 29, 2020, we raised the issuer credit rating on DDA to 'CCC' from 'SD' based on DDA's reliance on favorable market conditions to generate sufficient cash flow to meet its near-term debt obligations following its reopening.

Earlier, on March 20, 2020, we lowered the issuer credit rating to 'CCC' from 'B' because the gaming operator and gaming equipment sectors were facing an unprecedented decline in revenue resulting from the temporary closures of casinos across the U.S.

Table 121

Issuer Credit Rating--Downstream Development Authority
Date To
29-May-2020 CCC/Negative/--
20-May-2020 SD/NM/--
20-Mar-2020 CCC/Watch Neg/--
24-Aug-2018 B/Negative/--
26-Feb-2014 B/Stable/--
15-May-2013 B/Negative/--
24-Jun-2011 B/Stable/--
09-Jun-2011 B-/Watch Pos/--
12-Nov-2010 B-/Positive/--
13-Jul-2007 B-/Negative/--
Equinox Holdings Inc.
  • US$1.011 billion floating rate first-lien bank loan due March 8, 2024
  • US$200 million floating rate second-lien bank loan due Sept. 6, 2024
  • US$150 million floating rate revolver bank loan due March 8, 2022

On May 20, 2020, S&P Global Ratings lowered its issuer credit rating on New York-based fitness club operator Equinox Holdings Inc. to 'SD' from 'CCC' after the issuer completed an amendment to its partial guarantee on affiliate company SoulCycle Inc.'s credit facility that will allow it to delay a mandatory payment, which we view as tantamount to a default.

On May 26, 2020, we raised the issuer credit rating on Equinox to 'CCC' from 'SD'. The negative outlook reflects the possibility that we could lower the rating if we believe a near-term conventional default, restructuring, or transaction that we view as tantamount to a default becomes a near certainty.

Earlier, on April 20, 2020, we lowered the issuer credit rating on Equinox to 'CCC' from 'B-' following the closure of all its fitness clubs in the U.S. and freezing of all its club memberships due to the coronavirus outbreak.

Table 122

Issuer Credit Rating--Equinox Holdings Inc.
Date To
26-May-2020 CCC/Negative/--
20-May-2020 SD/NM/--
20-Apr-2020 CCC/Negative/--
20-Mar-2020 B-/Watch Neg/--
17-Jan-2020 B-/Stable/--
17-Nov-2014 B/Stable/--
08-Nov-2012 B/Positive/--
01-Oct-2008 B/Stable/--
27-Sep-2007 B-/Positive/--
10-Feb-2006 B-/Stable/--
06-Dec-2005 B/Watch Neg/--
25-Nov-2003 B/Stable/--
Akorn Inc.
  • US$1.045 billion floating rate term B bank lien due April 16, 2021
  • US$1.045 billion floating rate term B bank lien due April 16, 2021

On May 22, 2020, S&P Global Ratings lowered its issuer credit rating on Illinois-based generic pharmaceutical manufacturer company Akorn Inc. to 'D' from 'CC' after the issuer petitioned for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

On Nov. 25, 2020, S&P Global Ratings withdrew its rating at the issuer's request.

Table 123

Issuer Credit Rating--Akorn Inc.
Date To
25-Nov-2020 NR/--/--
21-May-2020 D/--/--
03-Apr-2020 CC/Watch Neg/--
13-Feb-2020 CCC-/Negative/--
16-Jan-2019 B-/Stable/--
14-Nov-2018 B/Negative/--
03-Oct-2018 B/Stable/--
11-May-2018 B/Watch Pos/--
06-Mar-2018 B+/Watch Dev/--
10-Apr-2017 B+/Watch Pos/--
19-May-2016 B+/Stable/--
11-May-2016 B/Watch Pos/--
09-Nov-2015 B/Watch Dev/--
10-Jun-2014 B+/Negative/--
14-May-2014 B+/Watch Neg/--
16-Oct-2013 B+/Stable/--
Centennial Resource Development Inc.
  • US$400 million 5.375% senior notes due Jan. 15, 2026
  • US$500 million 6.875% senior notes due 2027
  • US$127.073 million 8.00% second-lien notes due Jan. 6, 2025
  • US$700 million RBL first-lien guaranteed senior secured due April 5, 2023

On May 21, 2020, S&P Global Ratings lowered the issuer credit rating on Colorado-based oil and gas exploration and production company Centennial Resource Development Inc. to 'SD' from 'CC' after the issuer announced the exchange of a portion of its 2026 and 2027 senior secured notes for new second-lien secured notes due 2025 at 50% of par value.

On May 29, 2020, we raised the issuer credit rating to 'CCC+' from 'SD' following the distressed debt exchange. This reflects our forward-looking opinion post the reduction in outstanding gross debt by approximately $127 million.

Table 124

Issuer Credit Rating--Centennial Resource Development Inc.
Date To
28-May-2020 CCC+/Negative/--
21-May-2020 SD/NM/--
23-Apr-2020 CC/Negative/--
27-Mar-2020 CCC+/Negative/--
28-Nov-2018 B+/Stable/--
Guitar Center Inc.
  • US$635 million 9.50% notes due Oct. 21, 2021
  • US$318 million 5.00% payment-in-kind notes due April 15, 2022
  • US$35 million 10.00% first-lien notes due May 15, 2022

On May 22, 2020, S&P Global Ratings lowered its long-term issuer credit rating on California-based Guitar Center Inc. to 'SD' from 'CCC'. The rating action followed the issuer's completed exchange of its unsecured notes of cash and PIK. We considered this exchange as a distressed exchange. On May 29, 2020, we raised the issuer credit rating to 'CCC-' from 'SD', reflecting our view of the approaching maturities that may have led to further restructuring of its capital.

On Nov. 18, 2020, S&P Global Ratings lowered the issuer credit ratings to 'D' from 'CCC-' after the issuer missed interest payments due on Oct. 15, 2020, and announced that it had entered into a restructuring support agreement, which it intended to file for bankruptcy. On Dec. 23, 2020, we raised the issuer credit ratings to 'B-' from 'D'.

Table 125

Issuer Credit Rating--Guitar Center Inc.
Date To
23-Dec-2020 B-/Negative/--
18-Nov-2020 D/--/--
28-May-2020 CCC-/Negative/--
21-May-2020 SD/NM/--
12-Feb-2020 CCC/Negative/--
18-Apr-2018 CCC+/Negative/--
16-Apr-2018 SD/NM/--
12-Mar-2018 CC/Negative/--
29-Nov-2017 CCC-/Negative/--
Travelex Holdings Ltd.
  • £90 million floating rate bank loan
  • €360 million 8.00% callable notes due May 15, 2022

On May 25, 2020, S&P Global Ratings lowered the issuer credit rating on U.K.-based foreign-exchange service provider Travelex Holdings Ltd. to 'D' from 'CCC' after the issuer failed to make the interest payments on its senior secured notes. We view the nonpayment of interest as akin to default on the senior secured notes. This is due to the company's interest in preserving the liquidity and financial flexibility to continue operations.

On Aug. 24, 2020, S&P Global Ratings lowered the issuer credit ratings to 'D' from 'SD' after Travelex completed its restructuring plan, including the write-off of £225 million of debt. Later, on Oct. 15, 2020, we withdrew the ratings at the issuer's request.

Table 126

Issuer Credit Rating--Travelex Holdings Ltd.
Date To
15-Oct-2020 NR/--/--
24-Aug-2020 D/--/--
25-May-2020 SD/NM/--
04-Mar-2020 CCC/Watch Neg/--
09-Jan-2020 B-/Watch Neg/--
22-Dec-2016 B-/Negative/--
30-Aug-2016 B-/Stable/--
21-Sep-2015 B/Negative/--
08-Aug-2013 B/Stable/--
Unit Corp.
  • US$650 million 6.625% senior unsecured notes due May 15, 2021
  • US$425 million first-lien guaranteed senior secured revolver due Oct. 18, 2023

On May 26, 2020, S&P Global Ratings lowered its issuer credit rating on Oklahoma-based oil and gas exploration and production company Unit Corp. to 'D' from 'CC' after the issuer reorganized under Chapter 11 of the U.S. Bankruptcy Code. On June 25, 2020, we withdrew the issuer credit rating on Unit Corp. at its request.

Table 127

Issuer Credit Rating--Unit Corp.
Date To
25-Jun-2020 NR/--/--
26-May-2020 D/--/--
13-Nov-2019 CC/Negative/--
22-Aug-2019 B-/Negative/--
09-Feb-2016 B+/Stable/--
09-May-2011 BB-/Stable/--
Latam Airlines Group S.A.
  • US$500 million 7.25% senior notes due June 9, 2020
  • US$700 million 6.875% notes due April 11,2024
  • US$600 million 7.00% notes due March 1, 2026
  • US$275 million first-lien senior secured delayed draw term loan due June 29, 2021

On May 27, 2020, S&P Global Ratings lowered its issuer credit rating on Chile-based Latam Airlines Group S.A. to 'D' from 'CCC-' after the issuer volunteered a reorganization process under Chapter 11 of the Bankruptcy Code in the U.S. We consider that the debt restructuring under Chapter 11 constitutes a default.

On Aug. 17, 2020, we withdrew the rating on the company at its request.

Table 128

Issuer Credit Rating--Latam Airlines Group S.A.
Date To
17-Aug-2020 NR/--/--
27-May-2020 D/--/--
22-May-2020 CCC-/Watch Neg/--
15-May-2020 CCC+/Watch Neg/--
27-Mar-2020 B/Watch Neg/--
17-Mar-2020 BB-/Watch Neg/--
17-Mar-2017 BB-/Stable/--
28-Mar-2016 BB-/Negative/--
25-Nov-2015 BB/Negative/--
07-Oct-2014 BB/Stable/--
10-Jun-2013 BB/Positive/--
Tuesday Morning Corp.

On May 27, 2020, Texas-based retailer Tuesday Morning Corp. defaulted as the company filed for Chapter 11.

Earlier, in 2004, S&P Global Ratings withdrew its ratings on the company.

Table 129

Issuer Credit Rating--Tuesday Morning Corp.
Date To
10-Mar-2004 NR/--/--
08-Mar-2000 BB-/Stable/--
15-Mar-1999 B+/Watch Pos/--
19-Nov-1997 B+/Stable/--
Grupo Famsa S.A.B. de C.V.
  • US$80.922 million 9.75% notes due Dec. 15, 2024
  • US$250 million 7.25% notes due June 1, 2020
  • MXN1000 unsecured term loan due June 21, 2025

On June 2, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Mexican retailer Grupo Famsa S.A.B. de C.V. (GFamsa) to 'SD' from 'CCC-' .The company missed its interest and principal payments on its 7.25% senior unsecured notes on June 1, 2020. The downgrade to 'SD' follows GFamsa's missed interest and principal payments on its $59.1 million outstanding senior unsecured notes on June 1, 2020.

On Aug. 7, 2020, we lowered the issuer credit ratings to 'D' from 'SD' following GFamsa's bankruptcy filing in both Mexico and the U.S. On Dec. 12, 2020, we withdrew the issuer credit ratings on the company at its request.

Table 130

Issuer Credit Rating--Grupo Famsa S.A.B. de C.V.
Date To
14-Dec-2020 NR/--/--
07-Aug-2020 D/--/--
02-Jun-2020 SD/NM/--
13-Dec-2019 CCC-/Negative/--
04-Oct-2019 CCC+/Negative/--
01-Nov-2018 B-/Negative/--
30-May-2017 B/Negative/--
29-Aug-2016 B/Stable/--
31-May-2016 B/Watch Neg/--
11-Feb-2016 B/Stable/--
29-Aug-2014 B/Negative/--
09-May-2013 B/Positive/--
12-Jul-2010 B/Stable/--
Noble Corp. PLC
  • US$400 million 6.20% senior notes due Aug. 1, 2040
  • US$500 million senior notes due Aug. 1, 2020
  • US$400 million 4.625% senior hybrid due March 1, 2021
  • US$400 million 6.05% senior hybrid due March 1, 2041
  • US$400 million 3.95% notes due March 15, 2022
  • US$500 million 5.25% notes due March 15, 2042
  • US$450 million 5.95% senior notes due April 1, 2025
  • US$400 million 6.95% senior notes due April 1, 2045
  • US$1 billion 7.75% senior notes due Jan. 15, 2024
  • US$750 million 7.875% senior notes due Feb. 1, 2026

On June 2, 2020, S&P Global Ratings lowered its issuer credit rating on U.K.-based offshore drilling contractor Noble Corp. PLC to 'SD' from 'CCC-'as the company paid off 85% of its two seller loans (unrated) in exchange for a discount to the outstanding balance, effectively repurchasing both loans at about 85% of par value. S&P Global Ratings considers the repurchase to be distressed and tantamount to default given the holders received less than the original promise on the securities and that the offer was made to avoid a default and cross acceleration of Noble's unsecured debt.

On June 5, 2020, we raised our issuer credit rating on Noble to 'CCC-' from 'SD' as the company's repurchased about $118 million in principal value of its two seller loans due 2022 and 2023 at 85% of par value in a transaction we viewed as a selective default.

On July 17, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Noble to 'D' from 'CCC-' as the company skipped the interest payment on its 7.75% senior notes due 2024. We believe the company is unlikely to make this interest payment within the 30-day grace period as it has pursued a comprehensive capital restructuring or bankruptcy filing.

On Sept. 14, 2020, we withdrew the issuer credit ratings on the company at its request.

Table 131

Issuer Credit Rating--Noble Corp. PLC
Date To
14-Sep-2020 NR/--/--
17-Jul-2020 D/--/--
05-Jun-2020 CCC-/Negative/--
02-Jun-2020 SD/NM/--
17-Apr-2020 CCC-/Negative/--
25-Sep-2019 CCC+/Stable/--
31-Aug-2018 B/Negative/--
Valaris PLC
  • US$150 million 7.20% debt due Nov. 15, 2027
  • US$750 million 3.00% exchangeable senior notes due Jan. 31, 2024
  • US$500 million 4.875% senior notes due June 1, 2022
  • US$400 million 5.40% notes due Dec. 1, 2042
  • US$400 million 4.75% senior notes due Jan. 15, 2024
  • US$400 million 5.85% senior notes due Jan. 15, 2044
  • US$1.5 billion floating rate revolver bank ln due Jan. 23, 2021
  • US$400 million 7.375% notes due 2025
  • US$1.5 billion 4.70% notes due March 15, 2021
  • US$625 million senior notes due Oct. 1, 2024
  • US$1.025 billion 5.75% senior notes due Oct. 1, 2044
  • US$700 million 5.20% senior notes due March 15, 2025
  • US$500 million 8.00% senior notes due Jan. 31, 2024
  • US$1 billion 7.75% senior notes due Feb. 1, 2026

On June 3, 2020, S&P Global Ratings lowered its issuer credit rating on U.K.-based offshore drilling contractor Valaris PLC to 'D' from 'CCC-' because the company did not paid the June 1 interest payments on its senior notes due 2022 and 2042, and the company continued to discuss the terms of a comprehensive debt restructuring with its debtholders. The downgrade reflected our belief that continued low crude oil prices, the weak outlook for offshore drilling services, and the distressed level at which Valaris' debt is trading made it likely the company would not make the interest payments within the grace period.

Earlier, on April 20, 2020, we lowered our issuer credit rating on Valaris to 'CCC-' from 'CCC+' following the collapse in oil prices that led to a sharp drop in demand for all oilfield services, and the offshore activity that was expected to be weak over at least the next two years, given the higher cost, higher operating risk, and longer payback periods for offshore projects relative to onshore plays. Later, on Sept. 16, 2020, we withdrew the issuer credit ratings on the company at its request.

Table 132

Issuer Credit Rating--Valaris PLC
Date To
16-Sep-2020 NR/--/--
03-Jun-2020 D/--/--
20-Apr-2020 CCC-/Negative/--
25-Sep-2019 CCC+/Negative/--
26-Apr-2019 B-/Negative/--
09-Oct-2018 B-/Watch Pos/--
29-Aug-2018 B-/Negative/--
09-Oct-2017 B+/Negative/--
31-May-2017 BB/Watch Neg/--
08-Dec-2016 BB/Negative/--
15-Jul-2016 BBB-/Negative/--
11-Dec-2015 BBB/Stable/--
07-Aug-2015 BBB+/Negative/--
27-Aug-2012 BBB+/Stable/--
03-Jun-2011 BBB+/Negative/--
07-Feb-2011 BBB+/Watch Neg/--
07-Jan-2010 BBB+/Stable/--
California Pizza Kitchen Inc.
  • US$290 million floating rate first-lien term bank loan due Aug. 23, 2022
  • US$75 million floating rate second-lien term bank loan due Aug. 23, 2023
  • US$30 million floating rate revolver bank loan due Aug. 23, 2021

On June 4, 2020, S&P Global Ratings lowered its issuer credit rating on Los Angeles-based restaurant operator California Pizza Kitchen Inc. (CPK) to 'D' from 'CCC-' because the company missed its interest payments due at the end of May 2020 and entered into a forbearance agreement with its lenders. The company separately raised a bridge loan in April 2020 that required it to file a restructuring support agreement by June 15, 2020. CPK's performance was weak prior to the disruption stemming from the coronavirus pandemic; however, we believe the pandemic contributed additional operating pressure and potentially accelerated the need to restructure its debt.

On Aug. 14, 2020, we withdrew the issuer credit ratings on the company at its request. On Dec. 8, 2020, S&P Global Ratings assigned a 'CCC+' issuer credit rating to CPK after the issuer emerged from bankruptcy, where it was able to restructure US$200 million of reported prepetition debt.

Table 133

Issuer Credit Rating--California Pizza Kitchen Inc.
Date To
08-Dec-2020 CCC+/Negative/--
14-Aug-2020 NR/--/--
04-Jun-2020 D/--/--
27-Nov-2019 CCC-/Negative/--
17-Jul-2019 CCC+/Negative/--
11-May-2018 B-/Negative/--
02-Aug-2016 B-/Stable/--
17-Apr-2014 B-/Negative/--
25-Mar-2013 B/Stable/--
28-Aug-2012 B/Negative/--
16-Feb-2012 B/Stable/--
24 Hour Fitness Worldwide Inc.
  • US$500 million 8.00% senior notes due 2022
  • US$850 million floating rate term bank loan due May 30, 2025
  • US$120 million floating rate revolver bank loan due May 31, 2023

On June 5, 2020, S&P Global Ratings lowered its long-term issuer credit rating on California-based fitness service provider 24 Hour Fitness Worldwide Inc. to 'D' from 'CCC+' after the issuer missed interest payments on its senior notes due 2022 and entered into the grace period. We believe that COVID-19-related fitness club closures have materially impaired the company's liquidity position.

On Nov. 9, 2020, we withdrew the issuer credit ratings on the company at its request.

Table 134

Issuer Credit Rating--24 Hour Fitness Worldwide Inc.
Date To
09-Nov-2020 NR/--/--
05-Jun-2020 D/--/--
12-Mar-2020 CCC+/Negative/--
06-Nov-2019 B-/Negative/--
30-Mar-2010 B/Stable/--
21-Apr-2009 B/Negative/--
24-Dec-2008 B/Stable/--
17-Dec-2007 B/Negative/--
25-May-2005 B/Stable/--
04-May-2005 B/Watch Neg/--
04-Nov-2003 B/Positive/--
17-Jan-2001 B/Negative/--
20-Nov-2000 B/Watch Neg/--
17-Sep-1999 B+/Stable/--
APC Automotive Technologies Intermediate Holdings LLC
  • US$155 million A-2 term bank loan due May 9, 2025
  • US$25 million A-3 term bank loan due May 9, 2025
  • US$142.913 million floating rate B term bank loan due May 10, 2024
  • US$25 million floating rate A-1 term bank loan due May 9, 2025

On June 5, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Colorado-based APC Automotive Technologies Intermediate Holdings LLC to 'D' from 'CCC' after the issuer announced it was commencing Chapter 11 bankruptcy proceedings. The issuer was expected to reduce the outstanding debt amount by about US$290 million.

On Sept. 14, 2020, we withdrew the issuer credit ratings on the company at its request.

Table 135

Issuer Credit Rating--APC Automotive Technologies Intermediate Holdings LLC
Date To
14-Sep-2020 NR/--/--
05-Jun-2020 D/--/--
18-Nov-2019 CCC/Negative/--
13-Nov-2019 SD/NM/--
05-Nov-2019 CC/Negative/--
18-Sep-2019 CCC/Negative/--
14-May-2019 CCC+/Negative/--
12-Dec-2018 CCC+/Developing/--
01-Jun-2018 B-/Negative/--
24-Apr-2017 B/Stable/--
RGIS Holdings LLC
  • US$200 million bank loan due 2025
  • US$35 million floating rate revolver bank loan due 2022
  • US$460 million floating rate first-lien bank loan due March 31, 2023

On June 10, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Michigan-based inventory service and data collection provider RGIS Holdings LLC to 'D' from 'CCC-' after the issuer missed an interest payment on its secured term loan due on April 30, 2020. Subsequently, on May 29, 2020, the issuer obtained an amendment for extending the grace period until June 12 for the payment of interest of around US$4.1 million. The issuer also received a waiver on its total leverage ratio through June 12, 2020.

On July 2, 2020, we raised the issuer credit rating to 'B-' from 'D' after RGIS completed its debt restructuring and eliminated over US$ 230 million of debt, which, in turn, improved leverage.

Table 136

Issuer Credit Rating--RGIS Holdings LLC
Date To
02-Jul-2020 B-/Negative/--
10-Jun-2020 D/--/--
15-Apr-2020 CCC-/Watch Neg/--
19-Jun-2019 CCC+/Negative/--
03-Dec-2018 CCC+/Watch Neg/--
27-Jun-2018 B-/Negative/--
05-Apr-2017 B-/Stable/--
13-Mar-2017 CCC+/Watch Pos/--
03-Feb-2017 CCC+/Developing/--
27-Jun-2016 B-/Negative/--
04-Sep-2014 B/Stable/--
03-May-2012 B+/Stable/--
29-Jul-2010 B/Stable/--
02-Jul-2008 B-/Stable/--
10-Apr-2007 B-/Positive/--
Pyxus International Inc.
  • US$735 million 9.875% notes due July 15, 2021
  • US$275 million 8.50% first-lien notes due April 15, 2021
  • US$60 million floating rate ABL revolver bank loan due Jan. 14, 2021

On June 15, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Virginia-based tobacco leaf merchant Pyxus International Inc to 'D' from 'CCC-' after the issuer announced a reorganization process under Chapter 11 of the U.S. Bankruptcy Code with 92% of principal amount of its first-lien notes and 67% of its second-lien notes holders.

On Aug. 26, 2020, we withdrew the issuer credit ratings on the company at its request.

Table 137

Issuer Credit Rating--Pyxus International Inc.
Date To
26-Aug-2020 NR/--/--
15-Jun-2020 D/--/--
06-Apr-2020 CCC-/Negative/--
12-Dec-2019 CCC/Negative/--
27-Sep-2016 CCC+/Negative/--
28-Jul-2016 CCC/Negative/--
09-Apr-2015 CCC+/Negative/--
16-Mar-2015 B-/Watch Neg/--
24-Jul-2012 B/Stable/--
09-May-2011 B/Negative/--
02-Jul-2010 B+/Stable/--
22-Jun-2009 B+/Positive/--
24-Dec-2008 B+/Negative/--
17-Jun-2008 B+/Watch Neg/--
17-Mar-2008 B+/Stable/--
21-Nov-2005 B+/Negative/--
25-Oct-2005 BB-/Watch Neg/--
19-May-2005 BB-/Negative/--
17-May-2005 NR/--/--
25-May-2004 BB/Watch Neg/--
17-Mar-2004 BB/Stable/--
28-May-2003 BB/Positive/--
20-Jun-2000 BB/Stable/--
27-Jul-1999 BB+/Watch Neg/--
16-Nov-1998 BB+/Negative/--
22-Jul-1997 BB+/Stable/--
14-Feb-1997 BB+/Watch Neg/--
19-Apr-1996 BB+/Stable/--
11-Jul-1994 BB/Stable/--
12-Mar-1992 BB/Positive/--
03-May-1991 BB/Stable/--
SM Energy Co.
  • US$400 million senior notes due 2025
  • US$500 million 6.75% senior unsecured notes due 2026
  • US$500 million 6.625% senior notes due Jan. 15, 2027
  • US$447 million 10.00% notes due Jan. 15, 2025
  • US$500 million 5.00% senior unsecured notes due Jan. 15, 2024
  • US$400 million 6.125% notes due 2022
  • US$172.5 million 1.5% senior unsecured notes due July 1, 2021
  • US$1.1 billion first-lien senior secured reserve-based revolver due Sept. 28, 2023

On June 15, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Colorado-based oil and gas exploration and production company SM Energy Co. to 'SD' from 'CC' after the issuer announced the results of its previous exchange offer. The issuer expects to exchange US$447 million for US$612 million of its senior notes and US$107 million of its old convertible notes.

On June 18, 2020, we raised the issuer credit rating to 'CCC+' from 'SD' after the debt exchange was completed.

On Nov. 25, 2020, we lowered the issuer credit rating to 'SD' from 'CCC+' after the issuer disclosed it had repurchased a significant portion of senior unsecured notes due in 2022 and 2024 below par. Later, on Dec. 10, 2020, we raised the issuer credit rating to 'CCC+' from 'SD' after the company completed debt repurchases on favorable terms.

Table 138

Issuer Credit Rating--SM Energy Co.
Date To
10-Dec-2020 CCC+/Negative/--
25-Nov-2020 SD/NM/--
18-Jun-2020 CCC+/Negative/--
15-Jun-2020 SD/NM/--
30-Apr-2020 CC/Negative/--
01-Apr-2020 B-/Negative/--
21-Jun-2017 BB-/Stable/--
09-Aug-2016 BB-/Negative/--
09-Feb-2016 BB-/Stable/--
16-Jan-2015 BB/Stable/--
26-Jun-2014 BB/Positive/--
21-Mar-2008 BB/Stable/--
10-Dec-2007 BB-/Positive/--
29-Mar-2007 BB-/Stable/--
Source Energy Services Ltd.
  • C$158 million 10.50% first-lien senior notes due Dec. 15, 2021

On June 16, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Alta-based frac sand producer and supplier Source Energy Services Ltd. to 'D' from 'CCC-' after the issuer missed the interest payment due on June 15, and we believed the company was unlikely to make the interest payment within the 60-day grace period. The issuer's operation was suffering from weak crude oil prices and depressed demand.

On July 20, 2020, we withdrew the ratings on the issuer.

Table 139

Issuer Credit Rating--Source Energy Services Ltd.
Date To
20-Jul-2020 NR/--/--
16-Jun-2020 D/--/--
28-Apr-2020 CCC-/Negative/--
05-Dec-2019 CCC/Negative/--
28-May-2019 B/Negative/--
23-May-2018 B/Stable/--
Briggs & Stratton Corp.
  • US$225 million 6.875% senior notes due Dec. 15, 2020

On June 16, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Wisconsin-based small-engine manufacturer Briggs & Stratton Corp. to 'SD' from 'CCC-' after the issuer didn't make semiannual interest payments and used the grace period.

On July 20, 2020, S&P Global Ratings lowered its issuer credit rating to 'D' from 'SD' after the company filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. We believe this bankruptcy filing is due to the combined effect of the coronavirus pandemic and the company's weak performance in 2019.

On Aug. 21, 2020, we withdrew the issuer credit ratings on the company at its request.

Table 140

Issuer Credit Rating--Briggs & Stratton Corp.
Date To
21-Aug-2020 NR/--/--
20-Jul-2020 D/--/--
16-Jun-2020 SD/NM/--
02-Jun-2020 CCC-/Negative/--
18-Feb-2020 CCC/Negative/--
28-Oct-2019 B-/Negative/--
23-Aug-2019 B/Negative/--
28-Jun-2019 BB-/Negative/--
01-Mar-2019 BB-/Stable/--
20-Oct-2011 BB/Stable/--
28-Oct-2010 BB-/Positive/--
30-Sep-2008 BB-/Stable/--
18-Sep-2008 BB+/Watch Neg/--
19-Sep-2007 BB+/Negative/--
23-Jan-2007 BB+/Stable/--
20-Oct-2006 BBB-/Watch Neg/--
20-Jul-2006 BBB-/Negative/--
03-Jun-2004 BBB-/Stable/--
08-Aug-2003 BB+/Positive/--
03-Jun-2002 BB+/Stable/--
18-Apr-2002 BBB-/Watch Neg/--
16-May-2001 BBB-/Negative/--
01-Mar-2001 BBB+/Watch Neg/--
17-Apr-1997 BBB+/Stable/--
CSI Compressco L.P.
  • US$350 million 7.25% senior notes due Aug. 15, 2022
  • US$400 million 7.50% notes due April 1, 2025
  • US$155.529 million 10.00% second-lien notes due April 1, 2026
  • US$35 million first-lien guaranteed senior secured asset-based revolver due June 19, 2023

On June 16, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Texas-based natural gas compression services and equipment provider CSI Compressco L.P. to 'SD' from 'CC'. The issuer announced that it had tendered approximately US$215 million principal payment of the US$ 296 million senior unsecured notes due 2022. The eligible holders of second-lien notes received 97.5 cents on the dollar of the principal amount, whereas first-lien notes holders received 90 cents on the dollar of the principal amount.

Table 141

Issuer Credit Rating--CSI Compressco L.P.
Date To
19-Jun-2020 B-/Stable/--
16-Jun-2020 SD/NM/--
20-Apr-2020 CC/Negative/--
27-Jan-2016 B-/Stable/--
21-Jul-2014 B/Stable/--
Ferrellgas Partners L.P.
  • US$500 million 6.50% notes due May 1, 2021
  • US$475 million 6.75% senior unsecured notes due Jan. 15, 2022
  • US$500 million 6.75% senior notes due 2023
  • US$700 million 10.00% first-lien notes due April 15, 2025
  • US$357 million 8.625% senior notes due June 15, 2020

On June 16, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Missouri-based propane distributor Ferrellgas Partners L.P. to 'SD' from 'CC' after the issuer decided to not make the final maturity payment on its US$357 million unsecured notes and entered into a forbearance agreement with its debtholders until July 31, 2020.

Earlier, on March 20, 2020, we lowered the ratings to 'CC' from 'CCC-' based on our view that the issuer has an unsustainable capital structure and weak liquidity.

Table 142

Issuer Credit Rating--Ferrellgas Partners L.P.
Date To
16-Jun-2020 SD/NM/--
20-Mar-2020 CC/Negative/--
16-Oct-2019 CCC-/Negative/--
09-Nov-2018 CCC/Negative/--
29-Nov-2017 B-/Negative/--
30-Sep-2016 B/Negative/--
27-May-2016 B+/Negative/--
30-May-2014 B+/Stable/--
17-May-2013 B/Positive/--
29-May-2012 B/Stable/--
02-Nov-2011 B+/Negative/--
09-Mar-2005 B+/Stable/--
07-Apr-2004 BB-/Negative/--
07-Aug-2002 BB-/Stable/--
19-Nov-1999 B+/Stable/--
10-Nov-1999 B+/Watch Neg/--
19-Apr-1996 B+/Stable/--
ASP MCS Acquisition Corp.
  • US$35 million floating rate revolver bank loan due May 18, 2022
  • US$455 million floating rate term bank loan due May 20, 2024

On June 18, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Lewisville, Texas-based ASP MCS Acquisition Corp. (MCS) to 'D' from 'CCC' after the company missed its June 15 interest payment on its secured term loan due 2024. Although MCS had sufficient liquidity to make the interest payment, S&P Global Ratings believed that the company was unlikely to pay it within the five-day grace period, given its unsustainable capital structure.

On Oct. 20, 2020, S&P Global Ratings raised its issuer credit ratings to 'B-' from 'D' after the issuer announced it had completed a debt restructuring transaction, resulting in US$400 million of debt reduction. S&P Global Ratings then withdrew its issuer credit ratings on the company at its request.

Table 143

Issuer Credit Rating--ASP MCS Acquisition Corp.
Date To
20-Oct-2020 NR/--/--
20-Oct-2020 B-/Stable/--
18-Jun-2020 D/--/--
27-Aug-2019 CCC/Negative/--
12-Apr-2019 CCC+/Negative/--
17-Dec-2018 B-/Negative/--
28-Aug-2018 B-/Stable/--
02-May-2017 B/Stable/--
Jo-Ann Stores LLC
  • US$905 million floating rate first-lien term B bank loan due Oct. 20, 2023
  • US$225 million floating rate second-lien term bank loan due May 21, 2024

On June 19, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Hudson, Ohio-based fabric and crafts retailer Jo-Ann Stores LLC to 'SD' from 'CCC' as the company repurchased $5.6 million of its second-lien term loan at a 57% discount in the first quarter of fiscal 2021 ended May 2, 2020, and subsequently agreed to repurchase $206 million face value of first- and second-lien debt at approximately 50% discount in the second quarter ended Aug. 1, 2020. The transactions announced represented about 23% of total first- and second-lien term loans. We viewed the repurchases as distressed and tantamount to a default given lenders participating in the repurchase received substantially less than the original promise of the term loan.

On June 25, 2020, we raised our long-term issuer credit rating on Jo-Ann to 'CCC' from 'SD', reflecting the ongoing risk of a conventional default.

On Dec. 10, 2020, we raised the issuer credit rating on Jo-Ann to 'B-' from 'CCC' on the basis of its good business performance and extension of its asset-based lending facility. Growth during the year partially reflected temporarily heightened demand due to stay-at-home activities.

Table 144

Issuer Credit Rating--Jo-Ann Stores LLC (Jo-Ann Stores Holdings Inc.)
Date To
10-Dec-2020 B-/Positive/--
25-Jun-2020 CCC/Negative/--
18-Jun-2020 SD/NM/--
19-Mar-2020 CCC/Negative/--
19-Sep-2019 B-/Negative/--
22-Jun-2017 B/Stable/--
20-Mar-2014 B/Negative/--
09-Oct-2012 B/Stable/--
12-Apr-2012 B/Positive/--
24-Feb-2011 B/Stable/--
23-Dec-2010 BB-/Watch Neg/--
25-Jun-2010 BB-/Stable/--
06-Jan-2010 B+/Watch Pos/--
14-May-2009 B+/Stable/--
12-May-2008 B/Positive/--
03-Oct-2007 B-/Positive/--
27-Jun-2007 B-/Stable/--
07-Apr-2006 B-/Negative/--
05-Jan-2006 B+/Watch Neg/--
06-Oct-2005 BB-/Watch Neg/--
14-Jul-2005 BB-/Stable/--
14-Mar-2005 B+/Watch Pos/--
13-Feb-2004 B+/Positive/--
28-May-2002 B+/Stable/--
24-May-2001 B+/Negative/--
07-Dec-2000 BB-/Negative/--
19-Apr-1999 BB-/Stable/--
15-Aug-1997 NR/NR/--
31-Jul-1996 BB-/Stable/--
03-Mar-1995 BB-/Negative/--
26-Aug-1994 BB-/NM/--
18-May-1993 BB-/Stable/--
04-Mar-1992 BB+/Watch Neg/--
02-Mar-1992 BB-/Stable/--
18-Jun-1982 BB-/-/--
Chesapeake Energy Corp.
  • US$500 million 6.875% senior notes due Nov. 15, 2020
  • US$1.4 billion 6.625% senior notes due Aug. 15, 2020
  • US$1 billion 6.125% senior notes due Feb. 15, 2021
  • US$700 million 5.375% unsecured notes due June 15, 2021
  • US$1.1 billion 5.75% unsecured notes due March 15, 2023
  • US$1.5 billion 4.875% senior notes due April 15, 2022
  • US$1.25 billion 5.50% senior convertible due Sept. 15, 2026
  • US$1.05 billion 8.00% senior notes due Jan. 15, 2025
  • US$1.3 billion 8.00% notes due June 15, 2027
  • US$400 million 7.50% callable notes due Jan. 10, 2026
  • US$850 million 7.00% callable notes due Jan. 10, 2024
  • US$918.514 million 8.00% a/o US$45.685 ($873MM exchanged for notes due to 2025) notes due March 15, 2026
  • US$2.21 billion 11.50% second lien notes due Jan. 1, 2025
  • US$1.5 billion floating rate first-lien last out term A bank loan due June 23, 2024
  • US$3.0 billion first-lien guaranteed senior secured reserve based revolver due Sept, 12, 2023

On June 19, 2020, S&P Global Ratings lowered its issuer credit rating on Oklahoma City-based oil and gas exploration and production company Chesapeake Energy Corp. to 'D' from 'CC' as the company skipped the interest payments on its 5.375% senior notes due 2021 and 8.0% senior notes due 2027. The company will not make the interest payments within the 30-day grace period. The company was continuing discussions with its debtholders, and we believed these would result in a comprehensive debt restructuring or a bankruptcy filing.

Earlier, on May 1, 2020, we lowered our issuer credit rating on Chesapeake Energy to 'CC' from 'CCC'. The company had a $135 million interest payment due in mid-July and a $208 million debt maturity in August 2020, and its bonds traded at less than $0.10 on the dollar.

Later, on Aug. 11, 2020, we withdrew our issuer credit ratings on the company at its request.

Table 145

Issuer Credit Rating--Chesapeake Energy Corp.
Date To
11-Aug-2020 NR/--/--
19-Jun-2020 D/--/--
01-May-2020 CC/Negative/--
17-Jan-2020 CCC/Negative/--
13-Sep-2019 SD/NM/--
11-Feb-2019 B+/Stable/--
31-Oct-2018 B/Watch Pos/--
05-Mar-2018 B/Stable/--
20-Jan-2017 B-/Positive/--
06-Dec-2016 CCC+/Watch Pos/--
29-Sep-2016 CCC+/Negative/--
19-Sep-2016 SD/NM/--
15-Aug-2016 CC/Negative/--
24-Jun-2016 CCC/Negative/--
09-Jun-2016 SD/NM/--
19-May-2016 CCC/Negative/--
13-May-2016 SD/NM/--
09-Feb-2016 CCC/Negative/--
25-Jan-2016 CCC+/Negative/--
22-Dec-2015 B/Negative/--
02-Oct-2015 BB-/Negative/--
30-Apr-2015 BB+/Negative/--
16-Jan-2015 BB+/Stable/--
16-Oct-2014 BB+/Positive/--
16-May-2014 BB+/Stable/--
06-Feb-2014 BB-/Positive/--
26-Jul-2013 BB-/Stable/--
15-May-2012 BB-/Negative/--
26-Apr-2012 BB/Watch Neg/--
06-Feb-2012 BB+/Negative/--
08-Apr-2011 BB+/Stable/--
07-Feb-2011 BB/Watch Pos/--
12-Dec-2008 BB/Stable/--
09-Jul-2008 BB/Watch Pos/--
08-Dec-2006 BB/Positive/--
27-Sep-2005 BB/Stable/--
20-May-2004 BB-/Positive/--
10-Jul-2003 BB-/Stable/--
25-Feb-2003 B+/Watch Pos/--
18-Jan-2001 B+/Positive/--
05-Jul-2000 B/Watch Pos/--
15-Mar-2000 B/Stable/--
01-Nov-1999 B/Negative/--
07-Dec-1998 B/Watch Neg/--
14-Sep-1998 B/Watch Dev/--
07-Jul-1998 B+/Watch Dev/--
10-Apr-1998 B+/Stable/--
06-Mar-1998 BB-/Watch Neg/--
11-Jul-1997 BB-/Stable/--
30-Jun-1997 BB/Watch Neg/--
24-Dec-1996 BB/Stable/--
29-Oct-1996 B+/Watch Pos/--
20-Mar-1996 B+/Positive/--
15-May-1995 B/Positive/--
GK Holdings Inc.
  • US$175 million floating rate first-lien bank loan due Jan. 20, 2021
  • US$50 million floating rate second-lien bank loan due Jan. 20, 2022
  • US$20 million floating rate revolver bank loan due Dec. 30, 2020

On June 20, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Cary, N.C.-based information technology and business skills learning solutions provider GK Holdings Inc. to 'D' from 'CC' as the company did not make the interest payments due March 31, 2020, on its revolver and first- and second-lien term loans. We did not expect the company to make the interest payments due June 30 and anticipated that it could complete a comprehensive debt restructuring with its debtholders prior to Sept. 30, 2020, which is when its latest forbearance agreement would expire and its next interest payments come due.

Earlier, on March 31, 2020, we lowered our issuer credit rating on Global Knowledge to 'CC' from 'CCC-' as the company's liquidity remained very weak and it faced substantial near-term debt maturities, as well as needed to address its unsustainable capital structure.

Table 146

Issuer Credit Rating--GK Holdings Inc.
Date To
19-Jun-2020 D/--/--
31-Mar-2020 CC/Negative/--
25-Oct-2019 CCC-/Negative/--
02-Apr-2019 CCC/Negative/--
23-Jun-2017 CCC+/Negative/--
13-Jan-2017 B-/Watch Neg/--
27-Jan-2016 B/Stable/--
06-Jan-2015 B+/Stable/--
Boart Longyear Ltd.
  • US$88 million 7.00% senior notes due Dec. 31, 2022
  • US$200 million 10.00% senior secured notes due Dec. 31, 2022
  • US$92 million sub notes due Dec. 31, 2022
  • US$105 million second-lien guaranteed secured payment-in-kind term B due Dec. 31, 2022

On June 24, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Salt Lake City-based drilling services provider and manufacturer Boart Longyear Ltd. (BLY) to 'SD' from 'CC'. The downgrade followed BLY's conversion of the June 2020 and December 2020 interest payments due on its senior secured notes to payment-in-kind (PIK) interest from cash interest. The company was to pay 12.0% and 14.5% PIK interest in June and December, respectively, rather than the previous 10.0% rate. While these payments would have a higher interest rate, we considered this modification a selective default since investors were receiving less than they were originally promised under the security, partly because the amendment would delay the timing of the interest payments.

On July 2, 2020, we raised our issuer credit rating on BLY to 'CCC+' from 'SD' as the company completed amending interest payments on its senior secured notes to PIK from cash for 2020. The negative outlook reflects our view of a potential risk from a prolonged decline in customer's mining and drilling activity and slower-than-expected recovery, which could lead to further liquidity pressure and leverage remaining above 10x ahead of the large debt maturities in 2022, increasing the risk of another distressed transaction.

Earlier, on May 29, 2020, we lowered our ratings on BLY from 'CCC+' to 'CC' and placed them on CreditWatch with negative implications following the company's announcement of a proposal to convert the interest payments due on its senior secured notes in 2020 to PIK interest payments. We understood that the company was making those amendments to preserve cash because customers have had to suspend their mining operations or delay their project spending due to the coronavirus pandemic.

Table 147

Issuer Credit Rating--Boart Longyear Ltd.
Date To
01-Jul-2020 CCC+/Negative/--
23-Jun-2020 SD/NM/--
29-May-2020 CC/Watch Neg/--
19-Jul-2018 CCC+/Stable/--
13-Sep-2017 CCC+/Negative/--
01-Sep-2017 SD/NM/--
05-Apr-2017 CC/Watch Neg/--
10-Feb-2017 CCC-/Negative/--
13-Jul-2016 CCC+/Stable/--
15-Jul-2015 CCC+/Negative/--
24-Oct-2014 CCC/Watch Pos/--
18-Jul-2014 CCC/Negative/--
06-Mar-2014 CCC+/Negative/--
12-Sep-2013 B/Negative/--
15-Jul-2013 B+/Stable/--
01-Oct-2012 BB-/Stable/--
01-May-2012 BB-/Positive/--
15-Mar-2011 BB-/Stable/--
Serta Simmons Bedding LLC
  • US$1.95 billion floating rate first-lien term bank loan due Nov. 8, 2023
  • US$450 million floating rate second-lien term bank loan due Nov. 8, 2024

On June 23, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Doraville, Georgia–based leading U.S. bedding manufacturer Serta Simmons Bedding LLC to 'SD' from 'CC' as the company completed its distressed debt exchange, swapping $992 million first-lien debt and $300 million of second-lien debt for $851 million of super-priority second-out debt, and issued $200 million new super-priority first-out debt provided by the debt-exchange lenders. We viewed the debt exchange as distressed due to the company's weak operating performance, liquidity constraints, and lack of compensation to existing lenders for the exchange. The company faced intense earnings pressure due to years of market-share declines, further exacerbated by the stay-at-home orders and economic recession stemming from COVID-19.

On July 6, 2020, we raised our issue credit rating on Serta Simmons to 'CCC+' from 'SD', reflecting the improved liquidity profile, although the capital structure is still highly leveraged, and the company amended and extended its asset-based lending credit facility maturity to August 2023 from November 2021. The exchange provides additional liquidity for at least the next 12 months, but it minimally reduces leverage, and interest costs remain high. Therefore, we believe Serta Simmons' capital structure remains unsustainable, especially amid an uncertain economic environment that could continue to pressure operating performance and cash flow. The negative outlook reflects the risk of a lower rating if operating performance continues to deteriorate and the company fails to meet our expectations.

Earlier, on June 10, 2020, we lowered our issuer credit rating on Serta Simmons to 'CC' from 'CCC-' following the company's announcement that it entered into a transaction support agreement with a majority of its first- and second-lien term loan lenders to recapitalize the company. It expected the transaction would reduce net debt by $400 million. We viewed the proposed transaction, if completed, as distressed and tantamount to a selective default because the proposed transaction involved debt exchange at a discount.

On April 22, 2020, we lowered our issuer credit rating on Serta Simmons to 'CCC-' from 'CCC' as the spread of the COVID-19 pandemic and stay-at-home orders forced retail store closures, which resulted in a severe drop in mattress sales and minimal production.

Table 148

Issuer Credit Rating--Serta Simmons Bedding LLC
Date To
06-Jul-2020 CCC+/Negative/--
23-Jun-2020 SD/NM/--
09-Jun-2020 CC/Negative/--
21-Apr-2020 CCC-/Negative/--
04-Dec-2019 CCC/Negative/--
28-Mar-2019 CCC+/Negative/--
20-Mar-2018 B-/Negative/--
07-Sep-2012 B/Stable/--
Summit Midstream Partners L.P.
  • US$300 million 5.50% senior notes due Aug. 15, 2022
  • US$500 million 5.75% senior notes due April 15, 2025
  • US$300 million floating rate bank loan due May 13, 2022
  • US$1.25 billion first-lien guaranteed senior secured bank loan due May 13, 2022
  • US$28 million first-lien guaranteed senior secured bank loan due March 31, 2021

On June 24, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Houston-based Summit Midstream Partners L.P. (SMLP) to 'SD' from 'CCC'. On June 18, SMLP announced it repurchased approximately $90 million of its 2022 senior unsecured notes and 2025 senior unsecured notes for approximately $50 million in cash. S&P Global Ratings considered this a distressed transaction because of the discounted trading levels and noteholders receiving less than the original promise of the securities.

Earlier, on June 6, 2020, we lowered our issuer credit rating on SMLP to 'CCC' from 'B'. On May 28, 2020, SMLP closed the acquisition of Summit Midstream Partners LLC (Summit Investments), the owner of its general partner (Summit Midstream Partners Holdings LLC [SMP Holdings]), in a simplification transaction.

On Aug. 5, 2020, we raised our issuer credit rating on SMLP to 'CCC' from 'SD' on completion of the distressed exchanges. Further, on Sept. 25, 2020, we lowered the issuer credit rating to 'SD' from 'CC' after the issuer announced it retired US$38.7 million principal of 2025 notes at below the price of US$575 per 1,000 principal.

On Jan. 13, 2021, we raised the issuer credit rating to 'CCC+' form 'SD' after the issuer retired a huge sum of principal in second half of 2020, approximately US$550 million by early December 2020.

Table 149

Issuer Credit Rating--Summit Midstream Partners L.P.
Date To
13-Jan-2021 CCC+/Negative/--
25-Sep-2020 SD/NM/--
02-Sep-2020 CC/Negative/--
05-Aug-2020 CCC/Negative/--
23-Jun-2020 SD/NM/--
05-Jun-2020 CCC/Negative/--
25-Mar-2020 B/Negative/--
06-Feb-2020 B+/Stable/--
08-Nov-2017 BB-/Stable/--
05-Jun-2013 B+/Stable/--
GNC Holdings Inc.
  • US$100 million floating rate revolver bank loan due Aug. 28, 2022
  • US$979.33 million floating rate term loan B-2 bank loan due March 31, 2021
  • US$275 million floating rate FILO bank loan due Dec. 31, 2022
  • US$287 million 1.5% senior unsecured notes due Aug. 15, 2020

On June 25, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Pittsburgh-based retailer of health and wellness products GNC Holding Inc. to 'D' from 'CC' as the company commenced a voluntary prearranged Chapter 11 bankruptcy filing on June 23, 2020. In connection with the filing, the company entered into a restructuring support agreement with the holders of approximately 92% of the principal amount of its tranche B-2 term loan and approximately 87% of the principal amount of its asset-based lending FILO term loan.

On Aug. 19, 2020, we withdrew our issuer credit ratings on the company at its request.

Earlier, on March 21, 2020, we lowered our issuer credit rating on GNC to 'CC' from 'CCC+' and placed all ratings on CreditWatch with negative implications as the company announced that it did not expect to have sufficient cash flow from operations to repay its convertible senior notes and tranche B-2 term loan due. We believed conditions for GNC were deteriorating substantially due to the coronavirus pandemic, the anticipated macroeconomic downturn, and the limited access to capital markets.

Table 150

Issuer Credit Rating--GNC Holdings Inc.
Date To
19-Aug-2020 NR/--/--
24-Jun-2020 D/--/--
20-Mar-2020 CC/Watch Neg/--
13-Nov-2018 CCC+/Negative/--
14-Feb-2018 CCC+/Watch Neg/--
27-Dec-2017 SD/NM/--
21-Dec-2017 CC/Watch Neg/--
05-Dec-2017 CCC+/Watch Neg/--
10-Nov-2017 B/Negative/--
22-Sep-2017 B+/Negative/--
17-Mar-2017 BB-/Negative/--
17-Feb-2017 BB/Watch Neg/--
01-Aug-2016 BB/Negative/--
04-May-2016 BB+/Negative/--
20-Nov-2013 BB+/Stable/--
26-Jul-2012 BB/Stable/--
27-Feb-2012 BB-/Stable/--
CEC Entertainment Inc.
  • US$255 million 8.00% senior notes due Feb. 15, 2022
  • US$760 million floating rate first-lien term B bank loan due Aug. 30, 2026
  • US$114 million floating rate revolver bank loan due Aug. 30, 2024

On June 26, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Irving, Texas-based CEC Entertainment Inc. to 'D' from 'CC' as the company filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company noted that the filing resulted from the financial strain from the prolonged COVID-19 restaurant closures. CEC expects to achieve a balance sheet restructuring that supports its reopenings and long-term strategic plans.

Earlier, on April 15, 2020, we lowered our issuer credit rating on CEC to 'CC' from 'CCC' following the company's announcement that it formed a restructuring committee to explore various strategic alternatives, including an out-of-court or in-court restructuring.

On April 2, 2020, we lowered our issuer credit rating to 'CCC' from 'B-' and removed all of the ratings from CreditWatch negative, where they had been placed on March 19, 2020, as the company faced significant operational headwinds due to the coronavirus pandemic and had about $215 million of 8% senior unsecured notes maturing in less than two years.

Table 151

Issuer Credit Rating--CEC Entertainment Inc.
Date To
25-Jun-2020 D/--/--
14-Apr-2020 CC/Negative/--
01-Apr-2020 CCC/Negative/--
19-Mar-2020 B-/Watch Neg/--
01-Aug-2019 B-/Stable/--
09-Apr-2019 B-/Watch Pos/--
19-Oct-2017 B-/Negative/--
04-Feb-2014 B/Stable/--
W&T Offshore Inc.
  • US$625 million 9.75% second-lien notes due Nov. 1, 2023

On June 25, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Houston-based exploration and production (E&P) company W&T Offshore Inc. to 'SD' from 'CCC+' following the company's announcement that it repurchased about $72.5 million of its second-lien notes due 2023, about 10% of its total year-end 2019 long-term debt, for roughly $23.9 million, or an average 33% of par value. S&P Global Ratings viewed the repurchases as a distressed debt restructuring given the significant discount to par, cumulative size of the transactions, and W&T's weakened credit profile brought on by the weak and erratic pricing for crude oil and natural gas in 2020.

Earlier, on April 8, 2020, we lowered our issuer credit rating on W&T Offshore to 'CCC+' from 'B-'. A market share war between Saudi Arabia and Russia led to a crash in crude oil prices, on top of the significant demand destruction for crude oil and natural gas due to the coronavirus. S&P Global Ratings lowered its oil and natural gas price assumptions and forecasted that Brent crude would average $30 per barrel while West Texas Intermediate (WTI) averages $25 per barrel for the remainder of 2020. Liquidity also weakened as cash flows for debt repayment diminished.

On July 20, 2020, we raised the issuer credit rating to 'CCC+' from 'SD' after the issuer announced an improvement in leverage, which brought the borrowing base down to US$215 million from US$250 million.

Table 152

Issuer Credit Rating--W&T Offshore Inc.
Date To
20-Jul-2020 CCC+/Negative/--
25-Jun-2020 SD/NM/--
08-Apr-2020 CCC+/Negative/--
28-Sep-2018 B-/Stable/--
13-Sep-2016 CCC/Negative/--
09-Sep-2016 SD/NM/--
13-Jun-2016 CC/Negative/--
26-Feb-2016 CCC-/Negative/--
09-Feb-2016 B-/Negative/--
16-Jan-2009 B/Stable/--
01-Jun-2007 B/Positive/--
21-Apr-2006 B/Stable/--
Covia Holdings Corp.
  • US$1.65 billion floating rate term bank loan due June 1, 2025

On July 1, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Ohio-based frac sand and industrial minerals producer Covia Holdings Corp. to 'D' from 'CCC+'. The rating action followed Covia's announcement that its domestic subsidiaries filed voluntary petitions for restructuring under Chapter 11 of the U.S. Bankruptcy Code. The filing preceded Covia's entry into a restructuring support agreement with its lenders, which was to involve a comprehensive restructuring of the company's debt against the backdrop of energy price shocks and the recession caused by the global pandemic.

On Oct. 15, 2020, we withdrew the issuer credit ratings on the company at its request.

Earlier, on April 4, 2020, we lowered our issuer credit rating on Covia to 'CCC+' from 'BB-' after customers were dealing with a sudden and dramatic collapse in prices for the oil and gas they produce. Our assumptions included average oil prices for the rest of 2020 dropping as much as 55% from 2019 levels, which we believed was going to be a primary driver for Covia's leverage doubling in 2020 from 9.6x at the end of 2019.

Table 153

Issuer Credit Rating--Covia Holdings Corp. (SCR-Sibelco NV)
Date To
15-Oct-2020 NR/--/--
30-Jun-2020 D/--/--
03-Apr-2020 CCC+/Negative/--
07-May-2019 BB-/Stable/--
07-May-2018 BB/Stable/--
California Resources Corp.
  • US$1.75 billion 5.50% senior notes due Sept. 15, 2021
  • US$1 billion revolver bank loan due June 30, 2021
  • US$1 billion term bank loan due June 30, 2021
  • US$2.25 billion 6.00% senior notes due Nov. 15, 2024
  • US$2.25 billion 8.00% second-lien bank note due Dec. 15, 2022
  • US$1.3 billion floating rate first-lien second-out term bank loan due Dec. 31, 2021
  • US$1.3 billion floating rate term B bank loan due 2022

On July 1, 2020, S&P Global Ratings lowered its long-term issuer credit rating on California-based oil and gas exploration and production company California Resources Corp. to 'D' from 'CC'. The issuer missed the aggregate interest payments on first-, second-, and 1.5-lien term loans due in 2021 and 2022, which was unlikely to be paid in the 30-day grace period.

On Aug. 18, 2020, S&P Global Ratings withdrew its ratings on the issuer.

Table 154

Issuer Credit Rating--California Resources Corp.
Date To
18-Aug-2020 NR/--/--
01-Jul-2020 D/--/--
24-Feb-2020 CC/Negative/--
09-Sep-2016 CCC+/Negative/--
24-Aug-2016 SD/NM/--
02-Aug-2016 CC/Negative/--
14-Jan-2016 CCC+/Negative/--
28-Sep-2015 BB-/Negative/--
15-Jul-2015 BB+/Negative/--
05-Sep-2014 BB+/Stable/--
Grupo Aeromexico S.A.B. de C.V.
  • US$400 million 7.00% notes due Feb. 5, 2025

On July 1, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Mexican commercial aviation services provider Grupo Aeromexico S.A.B. de C.V. to 'D' from 'B-' after the issuer filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The company aimed to restructure its debt, capital structure, and business model to adapt to post-COVID-19 prospects.

Table 155

Issuer Credit Rating--Grupo Aeromexico S.A.B. de C.V.
Date To
01-Jul-2020 D/--/--
21-May-2020 B-/Negative/--
20-Mar-2020 B+/Watch Neg/--
24-Jan-2020 BB-/Negative/--
Grupo Posadas S.A.B. de C.V.
  • US$400 million 7.875% notes due June 30, 2022

On July 1, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Mexican lodging company Grupo Posadas S.A.B. de C.V. to 'D' from 'CC' after the issuer missed interest payments on senior unsecured notes due June 2022, which represent over 98% of total debt due, and announced it won't do it within the grace period. The decision to miss interest payments of about US$15.5 million was based on prioritization of liquidity toward its operations.

Table 156

Issuer Credit Rating--Grupo Posadas S. A. B. de C. V.
Date To
01-Jul-2020 D/--/--
26-Jun-2020 CC/Watch Neg/--
25-Mar-2020 CCC+/Negative/--