This year's global corporate default tally remains at 43, with no defaults for the second consecutive week. With less than half the number of defaults compared with this point in 2020, defaults have slowed considerably this year as creditworthiness even at the lower rating levels is stabilizing.
In the U.S., 15 out of 19 sectors have default totals that are less than one-third of defaults in 2020 as the number of issuers rated 'CCC' and below has decreased from 2020 all-time highs. Additionally, negative bias (percentage of issuers with negative outlooks or ratings on CreditWatch with negative implications) across U.S. sectors has eased over the last few months. However, many harder-hit sectors, such as media and entertainment, oil and gas, and retail, have higher proportions of speculative-grade issuers than at the start of the pandemic, leaving them vulnerable to further defaults.
This Week's Observations
- In 2020, 199 out of 226 defaults were rated 'CCC+' or lower, while so far in 2021, 39 out of 43 were rated 'CCC+' or lower.
- By region, the U.S. leads defaults in 2021, with 24 out of 43 (nearly 56%), whereas at this point in 2020, there were 63 defaults from the U.S. out of 94 (nearly 67%).
- By sector, oil and gas leads the default tally in 2021, with seven. At this time in 2020, there were 14 defaults from the sector.
- We expect the 12-month-trailing speculative-grade default rate for the U.S. to decrease to 4.7% in May from 5.4% in April 2021, while the same for Europe is expected to decrease to 5.4% from 5.8% through May 2021 (see table 1).
|U.S. 12-Month-Trailing Speculative-Grade Default Rate Declined To 5.4%|
|Region||12-month-trailing speculative-grade default rate (%)||2021 YTD||2020 YTD||2020||Weakest links|
|*Trailing-12-month default rates from May 31, 2020-May 31, 2021, are preliminary and subject to change. Year-to-date data as of June 2. Weakest link data as of April 30, 2021. Other developed region includes Australia, Canada, Japan, and New Zealand. Default counts may include confidentially rated issuers. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®.|
|The 2021 Global Corporate Default Tally Remains At 43|
|U.S.||Oil and gas||SD||CC||Distressed exchange|
Promotora de Informaciones S.A.
|Spain||Media and entertainment||SD||CC||Distressed exchange|
Burger BossCo Intermediate Inc.
Riverbed Parent Inc.
|U.S.||High technology||SD||CC||Distressed exchange|
AMC Entertainment Holdings Inc.
|U.S.||Media and entertainment||SD||CC||Distressed exchange|
Awesome Acquisition Co. L.P.
Alpha Media LLC
|U.S.||Media and entertainment||D||NR||Bankruptcy|
Imagine Group LLC (The)
|U.S.||Media and entertainment||D||CCC||Distressed exchange|
|U.S.||Retail/restaurants||D||CC||Missed interest payments|
Peabody Energy Corp.
|U.S.||Metals, mining, and steel||SD||CC||Distressed exchange|
|France||Oil and gas||SD||CC||Missed principal payments|
|U.S.||Consumer products||SD||CCC-||Distressed exchange|
CatLuxe Sarl (CatLuxe Acquisition Sarl)
|Luxembourg||Consumer products||SD||CCC+||Distressed exchange|
Form Technologies LLC
|U.S.||Capital goods||SD||CC||Distressed exchange|
|Argentina||Oil and gas||SD||CC||Distressed exchange|
Sunshine 100 China Holdings Ltd.
|Cayman Islands||Homebuilders/real estate companies||SD||CCC-||Distressed exchange|
Ensign Drilling Inc. (Ensign Energy Services Inc.)
|Canada||Oil and gas||SD||CCC+||Distressed exchange|
Highpoint Resources Corp.
|U.S.||Oil and gas||D||CC||Chapter 11|
Washington Prime Group Inc.
|U.S.||Homebuilders/real estate companies||D||CC||Missed interest payments|
AI Mistral Holdco Ltd.
YPF Energia Electrica S.A. (YPF S.A)
ION Geophysical Corp.
|U.S.||Oil and gas||SD||CC||Distressed exchange|
Summit Midstream Partners L.P.
Basic Energy Services Inc.
|U.S.||Oil and gas||D||CCC-||Missed interest payments|
Medical Depot Holdings Inc.
|U.S.||Health care||SD||CCC+||Distressed exchange|
Serta Simmons Bedding LLC
|U.S.||Consumer products||SD||CC||Distressed exchange|
Isagenix Worldwide Inc.
|U.S.||Consumer products||SD||CCC||Distressed exchange|
Maxcom Telecomunicaciones S.A.B. de C.V.
|Mexico||Telecommunications||D||CCC-||Missed interest payments|
Future Retail Ltd.
|Spain||Media and entertainment||SD||CC||Missed interest payments|
gategroup Holding AG
Voyager Aviation Holdings LLC
CDRH Parent Inc.
|U.S.||Health care||D||CC||Distressed exchange|
Boart Longyear Ltd.
|Australia||Metals, mining, and steel||D||CC||Bankruptcy|
|NR--Not rated. SD--Selective default. *Sunshine 100 China Holdings Ltd. is incorporated in the Cayman Islands but invests, develops, and manages real estate properties in the People’s Republic of China. Companies incorporated in the Cayman Islands are included in the U.S. default rate computation due to the location as a U.S. tax haven. Data as of June 2, 2021. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®.|
- The Weakest Links Tally Nears Pre-Pandemic Levels, June 2, 2021
- The European Speculative-Grade Corporate Default Rate Could Fall To 5.25% By March 2022, May 26, 2021
- The U.S. Speculative-Grade Corporate Default Rate Could Fall To 4% By March 2022, May 26, 2021
- Risky Credits: The Number Of U.S. And Canadian 'CCC' Rated Companies Shrinks By 25% Since May 2020 Peaks, May 26, 2021
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2020 Annual Taiwan Ratings Corp. Corporate Default And Rating Transition Study
- 2020 Annual U.S. Corporate Default And Rating Transition Study
- 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
- 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 Taiwan Structured Finance Default And Rating Transition Study
- 2020 Annual Global Structured Finance Default And Rating Transition Study
- 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
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
- 2020 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;|
|Secondary Contact:||David C Tesher, New York + 212-438-2618;|
|Research Contributor:||Shripati Pranshu, CRISIL Global Analytical Center, an S&P affiliate, Mumbai|
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