The 2021 corporate default tally increased to 48 after one U.S. default this week. The defaulter is Virginia-based internet protocol network operator GTT Communications Inc.
With this default, the year-to-date 2021 U.S. tally rose to 27--its lowest year-to-date level in the past four years. At this point in 2020, 2019, and 2018, defaults totaled 87, 45, and 32 in the region, respectively (see chart 2).
As the number of defaults fell in June 2021 to just two, we estimate that the U.S. 12-month-trailing speculative-grade corporate default rate will fall to 3.8% in June 2021 from 4.7% in May 2021. Credit conditions for borrowers in North America remain largely favorable entering the third quarter, underpinned by investors' continued thirst for yield and a strong economic rebound, particularly in the U.S.--where we expect the world's biggest economy to grow 6.7% this year (see "Looking Ahead, It's Looking Up," June 29, 2021).
This Week's Observations
- The year-to-date 2021 global default total, at 48, is lower than the year-to-date tallies of 132 in 2020 and 65 in 2019.
- Distressed exchanges lead the default tally so far in 2021, with 27, followed by confidential defaults and missed payments, with 10 and seven, respectively (see chart 4).
- The oil and gas, media and entertainment, consumer products, and retail and restaurants sectors led U.S. defaults in 2021, with 14 out of 27 defaults (see chart 2).
|The U.S. Leads 2021 Defaults With 27 Out Of 48|
|Region||12-month-trailing speculative-grade default rate (%)||2021§||2020§||2020||Weakest links|
|*Trailing-12-month default rates from June 30, 2020-June 30, 2021, are preliminary and subject to change. §Year-to-date data as of July 7. Weakest link data is as of May 31, 2021. Other developed region is 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 Is 48|
|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, LP
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|
|5/25/21||Confidential||Confidential||Homebuilders/real estate companies||D||CCC-||Confidential|
Peabody Energy Corp.§
|U.S.||Metals, mining, and steel||SD||CCC+||Distressed exchange|
Carlson Travel Inc
|U.S.||Media and entertainment||D||CCC||Missed interest payments|
GTT Communications Inc.
|U.S.||Telecommunications||SD||CCC-||Missed interest payments|
|NR--Not rated. SD--Selective default. Data as of July 7, 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. §Designation indicates the issuer's second default for 2021. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®.|
- COVID-19 Impact: Key Takeaways From Our Articles, July 8, 2021
- GTT Communications Inc. Downgraded To 'SD' On Missed Interest Payment, July 1, 2021
- Credit Conditions North America Q3 2021: Looking Ahead, It's Looking Up, June 29, 2021
- Metal Price Assumptions: Prices Stay Hot, But No Signs Of A Melting Point, June 29, 2021
- Nearly A Quarter Of Weakest Links Have Defaulted Since February 2020, June 23, 2021
- S&P Global Ratings Raises Short-Term Oil And Gas Price Assumptions On Improving Market Conditions, June 16, 2021
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2020 Annual European Corporate Default And Rating Transition Study
- 2020 Annual Asia Corporate Default And Rating Transition Study
- 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 Latin American 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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