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Default, Transition, and Recovery: The 2021 Global Corporate Default Tally Remains At 53

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Default, Transition, and Recovery: The 2021 Global Corporate Default Tally Remains At 53

The 2021 global corporate default tally remains at 53 after no defaults this week. Both the U.S. and European speculative-grade default rates have been falling since March 2021, following only 21 defaults in second-quarter 2021, compared with 93 defaults in second-quarter 2020.

The U.S. 12-month-trailing speculative-grade default rate fell to 3.8% in June 2021 from 4.7% in May 2021, while the European 12-month-trailing speculative-grade default rate declined to 4.7% from 5.5% (see chart 1).

By sector, consumer products leads defaults with eight, followed by oil and gas and media and entertainment, with seven each. The global credit outlook has improved in 2021 with policy stimulus, vaccine rollouts, liquidity present in the market, and profit improvements (see "Global Refinancing--Rated Corporate Debt Due Through 2026 Holds Near $12 Trillion," July 27, 2021). At this point in 2020, the oil and gas sector led global defaults, with 29, followed by consumer products, with 25, and media and entertainment, with 21 (see chart 2).

This Week's Observations

  • At this point in 2020, there were 59 defaults related to missed payments, versus 10 in 2021, whereas bankruptcy-related defaults totaled 35 in 2020, compared with only four so far in 2021 (see chart 4).
  • By quarter, there were 41 defaults related to missed interest and principal payments in second-quarter 2020, versus only three in second-quarter 2021.
  • By region, the U.S. leads 2021 global defaults with 29, compared with 99 at this time in 2020 and 49 in 2019.

Chart 1

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Chart 2

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Chart 3

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Chart 4

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Chart 5

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Table 1

The U.S. Leads 2021 Defaults With 29 Out Of 53
Region 12-month-trailing speculative-grade default rate (%) 2021 YTD 2020 YTD 2020 Weakest links
U.S. 3.8 29 99 146 213
Emerging markets 2.1 10 22 28 27
Europe 4.7 12 19 42 66
Other developed 1.5 2 9 10 18
Global 3.5 53 149 226 324
Note: Trailing-12-month default rates from June 30, 2020-June 30, 2021. Year-to-date data as of July 28. 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®.

Table 2

The 2021 Global Corporate Default Tally At 53
Date Parent company Country Subsector To From Reason
1/5/2021

HGIM Corp.

U.S. Oil and gas SD CC Distressed exchange
1/6/2021

Promotora de Informaciones S.A.

Spain Media and entertainment SD CC Distressed exchange
1/8/2021

Burger BossCo Intermediate Inc.

U.S. Retail/restaurants SD CCC Distressed exchange
1/8/2021

Riverbed Parent Inc.

U.S. High technology SD CC Distressed exchange
1/21/2021

AMC Entertainment Holdings Inc.

U.S. Media and entertainment SD CC Distressed exchange
1/25/2021

Awesome Acquisition Co. L.P.

U.S. Retail/restaurants D NR Chapter 11
1/25/2021

Alpha Media LLC

U.S. Media and entertainment D NR Bankruptcy
1/27/2021

Imagine Group LLC (The)

U.S. Media and entertainment D CCC Distressed exchange
2/2/2021

Belk Inc.

U.S. Retail/restaurants D CC Missed interest payments
2/3/2021

Peabody Energy Corp.§

U.S. Metals, mining, and steel SD CC Distressed exchange
2/3/2021 Confidential Confidential Health care SD CCC- Confidential
2/11/2021

Confidential

Confidential Automotive D CCC- Confidential
2/11/2021

Vallourec

France Oil and gas SD CC Missed principal payments
2/19/2021

Renfro Corp.

U.S. Consumer products SD CCC- Distressed exchange
2/22/2021

CatLuxe Sarl (CatLuxe Acquisition Sarl)

Luxembourg Consumer products SD CCC+ Distressed exchange
2/22/2021

Form Technologies LLC

U.S. Capital goods SD CC Distressed exchange
2/26/2021

YPF S.A.

Argentina Oil and gas SD CC Distressed exchange
3/2/2021

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
3/16/2021

Ensign Drilling Inc. (Ensign Energy Services Inc.)

Canada Oil and gas SD CCC+ Distressed exchange
3/16/2021

HighPoint Resources Corp.

U.S. Oil and gas D CC Chapter 11
3/17/2021

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
3/23/2021

Al Mistral Holdco Ltd.

U.K. Transportation SD CCC+ Distressed exchange
3/26/2021

Avation PLC

U.K. Transportation SD CC Distressed exchange
4/13/2021

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

Argentina Utilities SD CCC- Distressed exchange
4/14/2021

ION Geophysical Corp.

U.S. Oil and gas SD CC Distressed exchange
4/15/2021

Summit Midstream Partners L.P.

U.S. Midstream SD CC Distressed exchange
4/16/2021

Basic Energy Services Inc.

U.S. Oil and gas D CCC- Missed interest payments
4/19/2021

Medical Depot Holdings Inc.

U.S. Health care SD CCC+ Distressed exchange
4/19/2021

Serta Simmons Bedding LLC

U.S. Consumer products SD CC Distressed exchange
4/23/2021

Isagenix Worldwide, Inc

U.S. Consumer products SD CCC Distressed exchange
4/26/2021 Confidential Confidential High technology SD CCC+ Confidential
4/27/2021

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

Mexico Telecommunications D CCC- Missed interest payments
4/28/2021

Future Retail Ltd.

India Retail/restaurants SD CCC- Distressed exchange
4/28/2021 Confidential Confidential Consumer products SD CCC- Confidential
4/30/2021

Codere S.A.

Spain Media and entertainment SD CC Distressed exchange
5/3/2021 Confidential Confidential Transportation D CC Confidential
5/10/2021

gategroup Holding AG

Switzerland Transportation SD CCC Distressed exchange
5/10/2021

Voyager Aviation Holdings LLC

U.S. Transportation SD CC Distressed exchange
5/14/2021

CDRH Parent Inc.

U.S. Health care D CC Distressed exchange
5/19/2021

Boart Longyear Ltd.

Australia Metals, mining, and steel D CC Bankruptcy
5/25/2021 Confidential Confidential Homebuilders/real estate companies D CCC- Confidential
6/3/2021

Peabody Energy Corp.§

U.S. Metals, mining, and steel SD CCC+ Distressed exchange
6/23/2021

Carlson Travel Inc

U.S. Media and entertainment D CCC Missed interest payments
6/23/2021 Confidential Confidential Consumer products D CCC- Confidential
7/1/2021

GTT Communications Inc.

U.S. Telecommunications SD CCC- Missed interest payments
7/8/2021

KCIBT Holdings LP

U.S. Consumer products SD CCC Distressed exchange
7/9/2021

Joye Media SLU

Spain Media and entertainment D CCC- Missed interest payments
7/12/2021

Peabody Energy Corp.§

U.S. Metals, mining, and steel SD CCC Distressed exchange
7/13/2021

Sichuan Languang Development Co. Ltd.

China Homebuilders/real estate companies D CCC- Missed bond repayment
7/20/2021

Alpha Holding S.A. de C.V.

Mexico Financial institutions D CC Missed interest payments
NR--Not rated. SD--Selective default. Data as of July 28, 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. §Indicates issuer that has defaulted multiple times. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®.

Related Research

Default Studies

More analysis and statistics are available in our annual default studies, published on RatingsDirect:

Corporate (financial and nonfinancial)
Structured finance
U.S. public finance
Sovereign and international public finance

This report does not constitute a rating action.

Credit Markets Research:Nicole Serino, New York + 1 (212) 438 1396;
nicole.serino@spglobal.com
Secondary Contact:David C Tesher, New York + 212-438-2618;
david.tesher@spglobal.com
Research Contributor:Shripati Pranshu, CRISIL Global Analytical Center, an S&P affiliate, Mumbai

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