The 2021 global corporate default tally has reached 26 after we added one confidentially rated default in a monthly reconciliation process. This year's tally is less than two-thirds of the tally at the same point in 2020, when credit stress rapidly increased due to the COVID-19 pandemic.
Distressed exchanges remain the leading reason for default, accounting for nearly 60% of the global total. The 12-month trailing count of distressed exchanges is at its highest point since 2010, with 81 since April 2020 (see chart 1). In the first quarter of 2021, there were only three bankruptcy-related defaults, compared with nine in the first quarter of 2020.
This Week's Observations
- At this point in 2020, there had been 43 defaults globally in the year.
- By region, the U.S. leads the 2021 default tally with 15, followed by Europe with eight.
- By sector, oil and gas and media and entertainment lead the default tally with five and four, respectively, whereas at this point in 2020, retail and restaurants led the default tally with six.
- Defaults in the automotive and homebuilder and real estate sectors are above 2020 levels.
|Year-To-Date Defaults Are Much Lower In 2021 (26) Than In 2020 (43)|
|Global corporate default summary|
|Region||12-month trailing speculative-grade default rate (%)||2021 year-to-date default tally||2020 year-to-date default tally||2020 default tally||Weakest links tally|
|Notes: Other developed region consists of Australia, Canada, Japan, and New Zealand. Default counts may include confidentially rated issuers. *Trailing-12-month default rates from March 31, 2020-March 31, 2021, are preliminary and subject to change. Year-to-date data as of April 7, 2021. Weakest link data as of Jan. 31, 2021. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.|
|The 2021 Global Corporate Default Tally Rises To 26|
|U.S.||Oil and gas||SD||CC||Distressed exchange|
Promotora de Informaciones S.A.
|Spain||Media and entertainment||SD||CC||Distressed exchange|
Burger BossCo Intermediate Inc.
Riverbed Parent Inc.
|U.S.||High technology||SD||CC||Distressed exchange|
AMC Entertainment Holdings Inc.
|U.S.||Media and entertainment||SD||CC||Distressed exchange|
Awesome Acquisition Co. L.P.
Alpha Media LLC
|U.S.||Media and entertainment||D||NR||Bankruptcy|
Imagine Group LLC (The)
|U.S.||Media and entertainment||D||CCC||Distressed exchange|
|U.S.||Retail/restaurants||D||CC||Missed interest payments|
Peabody Energy Corp.
|U.S.||Metals, mining, and steel||SD||CC||Distressed exchange|
|France||Oil and gas||SD||CC||Missed principal payments|
|U.S.||Consumer products||SD||CCC-||Distressed exchange|
CatLuxe Sarl (CatLuxe Acquistion Sarl)
|Luxembourg||Consumer products||SD||CCC+||Distressed exchange|
Form Technologies LLC
|U.S.||Capital goods||SD||CC||Distressed exchange|
|Argentina||Oil and gas||SD||CC||Distressed exchange|
Sunshine 100 China Holdings Ltd.*
|Cayman Islands||Homebuilders/real estate companies||SD||CCC-||Distressed exchange|
Ensign Drilling Inc. (Ensign Energy Services Inc.)
|Canada||Oil and gas||SD||CCC+||Distressed exchange|
HighPoint Resources Corp.
|U.S.||Oil and gas||D||CC||Chapter 11|
Washington Prime Group Inc.
|U.S.||Homebuilders/real estate companies||D||CC||Missed interest payments|
AI Mistral Holdco Ltd.
|*Sunshine 100 China Holdings Ltd. is incorporated in the Cayman Islands but invests in, develops, and manages real estate properties in China. Companies incorporated in the Cayman Islands are included in the U.S. default rate computation due to their location in a U.S. tax haven. NR--Not rated. SD--Selective default. Data as of March 31, 2021. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.|
- The European Speculative-Grade Corporate Default Rate Could Reach 6.5% By December 2021, Feb. 25, 2021
- Credit Markets Update Europe Q2 2021, March 30, 2021
- Credit Markets Update North America Q2 2021, March 30, 2021
- U.S. Speculative-Grade Corporate Default Rate Forecast For Year-End 2021 Falls To 5.5%, March 30, 2021
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2020 Annual Global Corporate Default And Rating Transition Study
- 2020 Annual Japanese Issuer Credit Rating Transition Study
- 2019 Annual Mexican National Scale Corporate And Public Finance Default And Rating Transition Study
- 2019 Annual Greater China Corporate Default And Rating Transition Study
- 2019 Annual Emerging Markets Corporate Default And Rating Transition Study
- 2019 Annual European Corporate Default And Rating Transition Study
- 2019 Annual Latin American Corporate Default And Rating Transition Study
- 2019 Annual Asia Corporate Default And Rating Transition Study
- 2019 Annual Global Financial Services Default And Rating Transition Study
- 2019 Annual U.S. Corporate Default And Rating Transition Study
- 2019 Annual Taiwan Ratings Corp. Corporate Default And Rating Transition Study
- 2018 Annual Infrastructure Default And Rating Transition Study
- 2017 Annual Australia And New Zealand Corporate Default Study And Rating Transitions
- 2017 Annual Canadian Corporate Default Study And Rating Transitions
- 2017 Inaugural Nordic Default Study And Rating Transitions
- 2017 Annual Brazil Corporate Default Study And Rating Transitions
- 2020 Annual Japanese Structured Finance Default And Rating Transition Study
- 2019 Annual Mexican Structured Finance Default And Rating Transition Study
- 2019 Annual European Structured Finance Default And Rating Transition Study
- 2019 Annual Global Leveraged Loan CLO Default And Rating Transition Study
- 2019 Annual Global Structured Finance Default And Rating Transition Study
- 2019 Annual Taiwan Structured Finance Default And Rating Transition Study
U.S. public finance
- 2019 Annual U.S. Public Finance Default And Rating Transition Study
- 2017 Annual U.S. Public Finance Not-For-Profit Health Care Default Study And Rating Transitions
- 2017 U.S. Public Finance Utility Default Study And Rating Transitions
- 2017 U.S. Public Finance Transportation Default Study And Rating Transitions
- 2017 Annual U.S. Public Finance Housing Default Study And Rating Transitions
- 2017 Annual U.S. Public Finance Charter School Default Study And Rating Transitions
- 2017 Annual U.S. Public Finance Higher Education And Nonprofit Organization Default Study And Rating Transitions
Sovereign and international public finance
- 2019 Annual Sovereign Default And Rating Transition Study
- 2019 Annual International Public Finance Default And Rating Transition Study
This report does not constitute a rating action.
|Credit Markets Research:||Nicole Serino, New York + 1 (212) 438 1396;|
|Sudeep K Kesh, New York (1) 212-438-7982;|
|Research Contributor:||Shripati Pranshu, Mumbai;|
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