(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).
|Global Corporate Default Summary|
|Region||12-month trailing speculative-grade default rate (%)||2021 YTD||2020 YTD||2020||Weakest links|
|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®.|
|Global Corporate Defaults 2021|
|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. (A)
|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|
Al 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||Distressed exchange|
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|
|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.|
- 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
- The Weakest Links Tally Nears Pre-Pandemic Levels, Jun 02, 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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