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Default, Transition, and Recovery: Peabody Energy’s Second Selective Default Of 2021 Brings The Corporate Tally To 45

(Editor's Note: In the original version of this article, published June 11, 2021, we misstated the title for Chart 1. A corrected version follows.)

This year's global corporate default tally reached 45 with the selective default of Missouri-based coal producer Peabody Energy Corp. This is the company's second selective default so far in 2021 after it recently completed debt-for-equity exchanges with certain holders of its 6% senior secured notes due 2022, for a total of $26.5 million of principal outstanding (see " Peabody Energy Corp. Downgraded To 'SD' From 'CCC+' On Distressed Debt-For-Equity Exchange ", June 3, 2021). We have also added a confidential default to the tally as part of a monthly reconciliation process.

The oil and gas sector currently leads the default tally both globally and in the U.S. with seven and four, respectively. Although the global energy and natural resources 12-month speculative-grade default rate of 15.5% remains well above its five-year average of 10.9%, it is showing signs of slowing as the total number of defaults has slowed in 2021 versus the 2020 (see chart 1). We have recently revised our risk assessment for the upstream oil and gas producers to moderately high from intermediate in January, flagging the industry's changing investment landscape. Effects of environmental, social, and governance (ESG) trends and climate change on the oil and gas sector present significant challenges for companies and their credit profiles (see "The ESG Winds Of Change Could Become A Tempest For Global Oil And Gas Producers", June 2, 2021).

Chart 1


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Chart 4


Table 1

Global Corporate Default Summary
Region 12-month trailing speculative-grade default rate (%) 2021 YTD 2020 YTD 2020 Weakest links
U.S. 4.7* 25 66 146 235
Emerging market 2.7 7 14 28 27
Europe 5.4* 11 14 42 71
Other developed 3.5 2 6 10 20
Global 4.8 45 100 226 353
Note: *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 9, 2021. Weakest link data is 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®.

Table 2

Global Corporate Defaults 2021
Date Parent company Country Subsector To From Reason

HGIM Corp.

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.

U.S. Retail/restaurants SD CCC Distressed exchange

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.

U.S. Retail/restaurants D NR Chapter 11

Alpha Media LLC

U.S. Media and entertainment D NR Bankruptcy

Imagine Group LLC (The)

U.S. Media and entertainment D CCC Distressed exchange

Belk Inc.

U.S. Retail/restaurants D CC Missed interest payments

Peabody Energy Corp. (A)

U.S. Metals, mining, and steel SD CC Distressed exchange
2/3/2021 Confidential Confidential Health care SD CCC- Confidential


Confidential Automotive D CCC- Confidential


France Oil and gas SD CC Missed principal payments

Renfro Corp.

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
3/7/2021 Confidential Confidential Financial institutions D NR Confidential
3/8/2021 Confidential Confidential Financial institutions D B+ Confidential

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
3/18/2021 Confidential Confidential Consumer products D CCC Confidential

Al Mistral Holdco Ltd.

U.K. Transportation SD CCC+ Distressed exchange

Avation PLC

U.K. Transportation SD CC Distressed exchange

YPF Energia Electrica S.A. (YPF S.A)

Argentina Utilities SD CCC- Distressed exchange

ION Geophysical Corp.

U.S. Oil and gas SD CC Distressed exchange

Summit Midstream Partners L.P.

U.S. Midstream SD CC Distressed exchange

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
4/26/2021 Confidential Confidential High technology SD CCC+ Confidential

Maxcom Telecomunicaciones S.A.B. de C.V.

Mexico Telecommunications D CCC- Missed interest payments

Future Retail Ltd.

India Retail/restaurants SD CCC- Distressed exchange
4/28/2021 Confidential Confidential Consumer products SD CCC- Confidential

Codere S.A.

Spain Media and entertainment SD CC Distressed exchange
5/3/2021 Confidential Confidential Transportation D CC Confidential

gategroup Holding AG

Switzerland Transportation SD CCC Distressed exchange

Voyager Aviation Holdings LLC

U.S. Transportation SD CC Distressed exchange

CDRH Parent Inc.

U.S. Health care D CC Distressed exchange

Boart Longyear Ltd.

Australia Metals, mining, and steel D CC Bankruptcy
5/25/2021 Confidential Confidential Homebuilders/real estate companies D CCC- Confidential

Peabody Energy Corp. (B)

U.S. Metals, mining, and steel SD CCC+ Distressed exchange
Data as of June 9, 2021. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®. (B) designation indicates the issuers second default for 2021. *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. NR--Not rated. SD--Selective default.

Related Research

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