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Default, Transition, and Recovery: Array Canada Becomes The First Default In September

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Default, Transition, and Recovery: China-Based Sinic Holdings' Missed Bond Payment Pushes The 2021 Global Corporate Default Tally To 63

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Credit Trends: U.S. Corporate Bond Yields As Of Oct. 20, 2021

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Default, Transition, and Recovery: 2020 Annual Australia And New Zealand Corporate Default And Rating Transition Study


Default, Transition, and Recovery: Array Canada Becomes The First Default In September

The 2021 global corporate default tally remained at 59 this week after Toronto-based marketing services provider, Array Canada Inc., defaulted this week and one confidential issuer was removed from the tally due a monthly reconciliation process. Array Canada is the first default globally in September and the 12th in the quarter. With only one week to go, the third quarter default tally has remained at its lowest level since 2014 (see chart 1).

With only four defaults globally in August, the U.S. and Europe 12-month trailing speculative-grade default rate dropped in August to 2.85% and 4.02%, respectively (see chart 2). S&P Global Ratings expects the U.S. speculative-grade default rate to fall to 2.5% by June 2020 and the Europe speculative-grade default rate to fall to 3.25% in this same period (see "The U.S. Speculative-Grade Corporate Default Rate Could Fall To 2.5% By June 2022," Aug. 20, 2021, and "The European Speculative-Grade Corporate Default Rate Could Fall To 3.25% By June 2022," Aug. 25, 2021).

This Week's Observations

  • So far, the default tally in 2021 is lower than at this point in 2020, 2019, and 2018 with 175, 61, and 82 defaults, respectively.
  • By region, the U.S. leads the default tally in 2021, with 31, followed by the European and emerging market regions, with 13 and 12 each (see chart 1).
  • By sector, the consumer products sector, with nine defaults, leads the 2021 default tally, followed by the media and entertainment and oil and gas sectors, with eight and seven respectively (see chart 2).
  • Defaults related to distressed exchanges led 2021 defaults so far. Further, in the third quarter of 2021, five defaults were attributed to distressed exchanges in comparison with 15 and 12 defaults in the first and second quarter (see chart 3).

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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Chart 6

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Table 1

The U.S. Leads 2021 Defaults With 31 Out Of 59
Region 12-month-trailing speculative-grade default rate (%) 2021 YTD 2020 YTD 2020 Weakest links
U.S. 2.9 31 117 146 188
Emerging markets 2.0 12 22 28 26
Europe 4.0 13 27 42 65
Other developed 2.3 3 9 10 18
Global 2.9 59 175 226 297
Note: Trailing-12-month default rates from Aug. 31, 2020-Aug. 31, 2021. Year-to-date data as of Sept. 22. Weakest link data is as of July 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

The 2021 Global Corporate Default Tally Remains At 59
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 Acquistion 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

AI 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, LP

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
7/30/2021

Comdata Spa

Italy Financial institutions SD CC Distressed exchange
8/3/2021 Confidential Confidential Transportation SD CC Confidential
8/9/2021

Glass Mountain Pipeline, LLC

U.S. Utilities D CC Missed interest payments
8/11/2021

Sunshine 100 China Holdings Ltd.*§

U.S. Homebuilders/real estate companies SD CCC- Missed bond repayment
8/13/2021

CLISA-Compania Latinoamericana de Infraestructura & Servicios S.A.

Argentina Capital goods SD CC Distressed exchange
9/21/2021

Array Canada Inc.

Canada Consumer products SD CCC Distressed exchange
*Indicates the issuer has defaulted multiple times in 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. Data as of Sept. 22, 2021. 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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