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Default, Transition, and Recovery: Global Corporate Default Tally Remains At 67 As Defaults Continue To Slow

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Default, Transition, and Recovery: Global Corporate Defaults Drop Nearly 70% In 2021


Default, Transition, and Recovery: Global Corporate Default Tally Remains At 67 As Defaults Continue To Slow

The 2021 global corporate default tally remains at 67, with no defaults since our last report on Nov. 18, 2021. Through 2021, global quarterly defaults continue to show a downward trajectory. There have been just seven defaults so far in the fourth quarter, down from 13 in the third quarter. With the continued slowdown in the number of defaults, the 12-month trailing speculative-grade default rate for the U.S. declined to 2.0% in October 2021 from 6.6% in January 2021, while the European default rate fell to 2.5% from 5.1% during the same period (see chart 1 and 3).

However, risks are looming around inflation pressures driven by supply disruptions as well as the recent emergence of the coronavirus variant omicron, all adding to the uncertainty of the state of the economy and credit quality (see "Global Credit Outlook 2022: Aftershocks, Future Shocks And Transitions," published Nov. 30, 2021, and chart 3).

Chart 1

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This Week's Observations

  • The U.S. leads the 2021 default tally with 37 followed by the emerging market region with 14 defaults.
  • By sector, consumer products and media and entertainment lead the 2021 tally with nine defaults each.
  • Defaults related to distressed exchanges accounted for 52% in 2021 while in 2020 they accounted for 33%.
  • The 12-month-trailing speculative-grade default rate for global energy and natural resources fell to 6.1% in October 2021 from 7.0% in September 2021.

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

Global Corporate Defaults 2021
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. (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.

U.S. 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.

U.S. 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.

U.S. High Technology D CC Chapter 11
NR--Not rated. SD--Selective default. Data as of Dec. 1, 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

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:Tanya Dias, CRISIL Global Analytical Center, an S&P affiliate, Mumbai

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