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Default, Transition, and Recovery: Two Defaults Brings The Corporate Tally To 67

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Default, Transition, and Recovery: Two Defaults Brings The Corporate Tally To 67

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.

Chart 1

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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.

Chart 2

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Chart 3

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Chart 4

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Table 1

Global Corporate Default Summary
Region 12-Month trailing speculative-grade default rate (%) 2021 YTD 2020 YTD 2020 Weakest links
U.S. 2.0* 37 135 146 155
Emerging market 2.2 14 28 28 20
Europe 2.5* 13 38 42 54
Other developed 3.0 3 9 10 13
Global 2.6 67 210 226 242
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®.

Table 2

The 2021 Global Corporate Default Tally Inches To 67
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. (A)

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 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
4/26/2021 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. (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
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. (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
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. 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
9/29/2021 Confidential Confidential Financial institutions D B- Confidential
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.

Related Research

Signs Of Weakness Among Lowest-Rated Homebuilder And Real Estate Issuers, Oct. 29, 2021

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:Yogesh Kumar, Pune;
yogesh.kumar2@spglobal.com

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