The 2021 global corporate default tally increased to 67 following the defaults of Brazil-based transportation infrastructure group Investimentos e Participações em Infraestrutura S.A.-INVEPAR and California-based technology company Riverbed Parent, Inc. With these defaults, the U.S. and emerging market region default tallies increased to 37 and 14--both tallies substantially lower than at this point in 2020 which had 146 and 28 defaults, respectively (see chart 1). Although the number of emerging defaults has been lower so far in 2021, risks remain, including rising inflation as input costs for producers across major emerging markets have been rising faster than consumer prices (see "Rising Yields Could Expose Pockets Of Funding Constraints", Nov. 10, 2021). Argentina leads the regional default tally with three, followed by Mexico, with two.
This Week's Observations
- Global defaults have declined by 67% in 2021 from pandemic-related peaks of 2020.
- The consumer products and media and entertainment sectors continue to lead the 2021 default tally with nine defaults each.
- Defaults related to distressed exchanges have accounted for most of the defaults so far in 2021.
- The U.S. trailing-12-month speculative-grade corporate default rate is expected to reach 2.5% by September 2022 from 2.4% in September 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 Oct. 31, 2020 - Oct. 31, 2021, are preliminary and subject to change. Year-to-date data as of Nov. 17, 2021. Weakest link data is as of Noc. 03, 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®.|
|The 2021 Global Corporate Default Tally Inches To 67|
|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|
|1/21/2021||AMC Entertainment Holdings Inc.||U.S.||Media and entertainment||SD||CC||Distressed exchange|
Awesome Acquisition Co. L.P.
|1/25/2021||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|
|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|
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|
|3/17/2021||Washington Prime Group Inc.||U.S.||Homebuilders/real estate companies||D||CC||Missed interest payments|
|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, 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|
|4/27/2021||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|
|4/30/2021||Codere S.A.||Spain||Media and entertainment||SD||CC||Distressed exchange|
|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. (B)||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|
|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. (C)||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|
Glass Mountain Pipeline, LLC
|U.S.||Utilities||D||CC||Missed interest payments|
|8/11/2021||Sunshine 100 China Holdings Ltd.||Cayman Islands||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|
|10/4/2021||IPC Corp.||United States||Telecommunications||SD||CCC-||Distressed exchange|
|10/5/2021||Fantasia Holdings Group Co. Ltd.||Cayman Islands||Homebuilders/real estate companies||SD||CCC||Missed bond repayment|
|10/15/2021||Confidential||Confidential||Homebuilders/real estate companies||SD||CC||Confidential|
|10/19/2021||Sinic Holdings (Group) Co. Ltd.||Cayman Islands||Homebuilders/real estate companies||SD||CC||Missed bond repayment|
|11/2/2021||Exela Technologies Inc.||United States||Media and entertainment||SD||CCC-||Distressed exchange|
|11/11/2021||Investimentos e Participacoes em Infraestrutura S.A. - Invepar||Brazil||Utility||D||CC||Distressed exchange|
|11/17/2021||Riverbed Parent, Inc.||United States||High Technology||D||CC||Chapter 11|
|NR--Not rated. SD--Selective default. Data as of Nov. 17, 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., Fantasia Holdings Group Co. Ltd. and Sinic Holdings (Group)Co Ltd. are incorporated in the Cayman Islands but invest, develop, and manage 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.|
- The U.S. Speculative-Grade Corporate Default Rate Could Reach 2.5% By September 2022, Nov. 16, 2021.
- Riverbed Parent Inc. Downgraded To 'D' From 'CC' On Chapter 11 Bankruptcy Filing, Nov. 18, 2021
- Investimentos e Participacoes em Infraestrutura S.A. - Invepar Downgraded To 'D' From 'CC' On Distressed Exchange, Nov. 12, 2021
- Exela Technologies Inc. Downgraded To 'SD' From 'CCC-' On Debt Repurchases And Announced Debt Exchanges, Nov. 3, 2021
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2020 Annual Australia And New Zealand Corporate Default And Rating Transition Study
- 2020 Annual Infrastructure Default And Rating Transition Study
- 2020 Annual Global Financial Services Default And Rating Transition Study
- 2020 Annual Latin American Corporate Default And Rating Transition Study
- 2020 Annual Greater China Corporate Default And Rating Transition Study
- 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 Emerging Markets Corporate Default And Rating Transition Study
- 2020 Annual European Structured Finance Default And Rating Transition Study
- 2020 Annual Global Leveraged Loan CLO Default And Rating Transition Study
- 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
U.S. public finance
Sovereign and international public finance
- 2020 Annual International Public Finance Default And Rating Transition Study
- 2020 Annual Sovereign 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:||Yogesh Kumar, Pune;|
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