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Default, Transition, and Recovery: Global Corporate Defaults Push Past 2021’s Year-End Total

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S&P Global Ratings' 2022 global corporate default tally has increased to 77 after eight companies defaulted in November:

  • Germany-based financial institution CORESTATE Capital Holding S.A.,
  • U.S.-based logistic service provider Neovia Logistics L.P.,
  • China-based property developer Greenland Holding Group Co. Ltd.,
  • Canada-based health care company Canopy Growth Corp.,
  • U.S.-based specialty home retailer Bed Bath & Beyond Inc.,
  • U.S.-based print-based customer service provider Vericast Corp.,
  • U.K.-based retailing company L1R HB Finance Ltd., and
  • One confidential issuer.

With eight defaults in November, the global default tally will finish the year above 2021's level. While rising, defaults in 2022 still compare favorably with prior years and the current total is still 30% below the five-year average.

Defaults in the U.S. and Europe were tied in November with three each. We estimated the U.S. 12-month-trailing speculative-grade default rate to have increased in November 2022 to 1.6%, and Europe's 12-month-trailing speculative-grade default rate to increase at 2.1%. The U.S. remains the only region where defaults are lower than its previous year tally.

Chart 1

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Table 1

Global Corporate Default Summary
Region 12-Month-Trailing Speculative-Grade Default Rate (%) Weakest Links
U.S. *1.6 162
Emerging markets 2.0 20
Europe *2.1 48
Other developed 2.3 9
Global 1.7 239
*Trailing-12-month speculative-grade default rates from Nov. 30, 2022 are preliminary and subject to change. Trailing-12-month speculative-grade default rates from Oct. 31, 2022.cYear-to-date data as of Nov. 30, 2022. Weakest link data is as of Oct. 17, 2022. 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®.

Consumer Products And Retail Drove Defaults In November

The consumer sector continues to lead defaults in 2022 with 14, compared to only nine at this point in 2021. One half of November's defaults came from consumer products or retail, as lower rated issuers in these sectors continue to face drops in discretionary spending. We can expect the number of defaults from these sectors to continue into 2023, given that these sectors lead with the highest number of weakest links--issuers rated 'B-' and below with either a negative outlook or CreditWatch placement—globally.

Chart 2

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Distressed Exchanges Are Increasing

November distressed exchanges accounted for six of the eight defaults. Distressed exchanges have become more prevalent in 2022 as a way for distressed companies to restructure out of court and negotiate with investors to address liquidity or solvency needs. As financing conditions continue to tighten and speculative-grade credit quality likely deteriorates, we can expect the number of distressed exchanges to continue to rise in 2023. To date in 2022, distressed exchanges are the primary reason for defaults.

Chart 3

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Chart 4

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Table 2

Global Corporate Defaults, So Far In 2022
Date Parent company Country/Market Subsector To From Reason
01/04/22

ION Geophysical Corp.

U.S. Oil and gas D CCC Missed principal and interest payments
01/04/22 Confidential Confidential Utilities D NR Confidential
01/13/22

R&F Properties (HK) Co. Ltd.

Hong Kong Homebuilders/real estate companies SD CC Distressed exchange
01/19/22 Confidential Confidential Homebuilders/real estate companies SD CCC- Confidential
01/24/22

Fusion Connect Inc.

U.S. Telecommunications SD CC Distressed exchange
02/01/22

Future Retail Ltd.

India Consumer products SD CCC- Missed principal payments
02/01/22 TPC Group Inc. (TPC Group LLC) U.S. Health care D CCC Missed interest payments
02/04/22 Confidential Confidential Consumer products D NR Confidential
02/09/22 Confidential Confidential Consumer products SD CCC Confidential
02/10/22

Credito Real S.A.B. de C.V., SOFOM, E.N.R.

Mexico Financial institutions SD CCC- Missed principal payments
02/11/22 Confidential Confidential Homebuilders/real estate companies SD CC Confidential
02/17/22

U.S. TelePacific Holdings Corp.

U.S. Telecommunications SD CCC- Distressed exchange
03/15/22 Diamond Sports Group LLC (Sinclair Broadcast Group Inc.) U.S. Media and entertainment SD CC Distressed exchange
03/21/22

Mulhacen Pte. Ltd.

Singapore Financial institutions D CC Distressed exchange
03/24/22

MHP SE

Ukraine Consumer products SD B- Missed interest payments
04/01/22

Ruby Pipeline LLC

U.S. Utilities D CC Missed principal payments
04/07/22 Owl Finance Ltd. (Hibu Group Ltd.) U.K. Media and entertainment SD CC Distressed exchange
04/07/22

PSS Industrial Group Corp.

U.S. Utilities D CCC- Missed principal and interest payments
04/08/22

Guangzhou R&F Properties Co. Ltd.

China Homebuilders/real estate companies SD CC Distressed exchange
04/08/22

Kernel Holding S.A.

Ukraine Consumer products SD B- Missed interest payments
04/11/22 Confidential Confidential Homebuilders/real estate companies SD CC Confidential
04/11/22

Promotora de Informaciones S.A.

Spain Media and entertainment SD CC Distressed exchange
04/12/22

Dunn Paper Holdings Inc.

U.S. Chemicals, packaging, and environmental services D CCC Missed interest payments
04/12/22

Grupo Kaltex S.A. de C.V.

Mexico Consumer products D CCC- Missed principal payments
04/12/22

Petropavlovsk PLC

U.K. Metals, mining, and steel SD CCC- Missed interest payments
04/13/22 Confidential Confidential High technology D CCC Confidential
04/14/22

EuroChem Group AG

Switzerland Chemicals, packaging, and environmental services SD CCC- Missed interest payments
04/22/22 Confidential Confidential Aerospace and defense SD CCC+ Confidential
05/03/22

Envision Healthcare Corp. (Envision Healthcare Holdings Inc.)

U.S. Health Care SD CCC Distressed exchange
05/06/22

Safari Beteiligungs Gmbh (Dice Midco Sarl)

Germany Media and entertainment SD CC Distressed exchange
05/10/22

Talen Energy Supply LLC (Talen Energy Corp.)

U.S. Utlities D CCC Bankruptcy
05/26/22 Confidential Confidential Financial institutions SD CCC- Confidential
06/01/22 Confidential Confidential Homebuilders/real estate companies SD CC Confidential
06/10/22 Confidential Confidential Homebuilders/real estate companies SD CC Confidential
06/13/22 Confidential Confidential Homebuilders/real estate companies SD CC Confidential
06/16/22

Revlon Inc.

U.S. Consumer products D CCC- Bankruptcy
06/21/22

Greenland Holding Group Co. Ltd.

China Homebuilders/real estate companies SD CC Distressed exchange
06/30/22

Rite Aid Corp.

U.S. Retail/restaurants SD CC Distressed exchange
07/06/22

Canopy Growth Corp.

Canada Consumer products SD CCC Distressed exchange
07/07/22

SAS AB

Sweden Transportation D CC Bankruptcy
07/14/22

SK HoldCo LLC

U.S. Automotive SD CC Distressed exchange
07/18/22

PT Sawit Sumbermas Sarana Tbk

Indonesia Forest products and building materials SD CC Distressed exchange
07/28/22

Mountain Province Diamonds Inc.

Canada Metals, mining, and steel SD CCC- Distressed exchange
08/09/22

Output Services Group Inc.

U.S. Consumer products D CC Bankruptcy
08/09/22 Unifin Financiera, S.A.B. de C.V. Mexico Financial institutions D B+ Missed principal and interest payments
08/11/22 Dawn Acquisitions LLC (Infra Colodata Holdings LLC) U.S. Telecommunications SD CCC Distressed exchange
08/12/22 Confidential Confidential Retail/restaurants SD CCC- Confidential
08/12/22

Altera Infrastructure L.P.

Marshall Islands Midstream D NR Bankruptcy
08/17/22 Endo International PLC Ireland Health Care D CC Bankruptcy
08/19/22

GEO Group Inc. (The)

U.S. Consumer products SD CC Distressed exchange
08/23/22

Carestream Health Inc.

U.S. Health Care D CC Bankruptcy
08/29/22 Confidential Confidential Homebuilders/real estate companies SD CCC Confidential
08/30/22

Envision Healthcare Corp. (Envision Healthcare Holdings Inc.)

U.S. Health Care SD CCC Distressed exchange
09/01/22

Bright Bidco B.V.

Netherlands Automotive D CCC Bankruptcy
09/01/22

Vue International Bidco plc (Vue Entertainment International Ltd)

U.K. Media and entertainment D CC Distressed exchange
09/09/22

Cineworld Group PLC

U.K. Media and entertainment D CCC Bankruptcy
09/27/22 Confidential Confidential Retail/restaurants SD CC Confidential
09/28/22

Phoenix Services International LLC

U.S. Metals, mining, and steel D CCC+ Bankruptcy
09/30/22

Isagenix Worldwide Inc.

U.S. Consumer products D CCC Missed principal and interest payments
09/30/22

Bausch Health Cos. Inc.

Canada Health care SD CC Distressed exchange
09/30/22

Schur Flexibles GmbH

Germany Chemicals, packaging, and environmental services SD CC Distressed exchange
10/03/22

Transocean Ltd.

Switzerland Oil and gas SD CC Distressed exchange
10/03/22

E-House (China) Enterprise Holdings Ltd.

China Consumer products D NR Bankruptcy
10/06/22

Metalcorp Group S.A.

Luxembourg Metals, mining, and steel SD B Missed principal payments
10/11/22

Turkiston Bank

Uzbekistan Financial institutions D CCC+ Bankruptcy
10/13/22

K&N Parent Inc.

U.S. Automotive D CCC Distressed exchange
10/19/22

Fly Leasing Ltd.

Bermuda Transportation SD CCC- Distressed exchange
10/25/22 Confidential Confidential Homebuilders/real estate companies SD CC Confidential
10/31/22

Mitel Networks (International) Ltd.

U.K. High technology SD CCC Distressed exchange
11/07/22

Vericast Corp.

U.S. Media and entertainment SD CC Distressed exchange
11/14/22

Bed Bath & Beyond Inc.

U.S. Retail/restaurants SD CC Distressed exchange
11/15/22

Canopy Growth Corp. (B)

Canada Consumer products SD CC Distressed exchange
11/15/22

Greenland Holding Group Co. Ltd.(B)

China Homebuilders/real estate companies SD CC Missed principal payments
11/16/22 Confidential Confidential Consumer products SD CC Confidential
11/16/22

L1R HB Finance Ltd.

U.K. Retail/restaurants SD CC Distressed exchange
11/18/22

Neovia Logistics L.P.

U.S. Transportation D CC Distressed exchange
11/29/22

CORESTATE Capital Holding S.A.

Luxembourg Financial institutions D CC Missed principal and interest payments
Data as of Nov. 30, 2022. NR--Not rated. SD--Selective default. 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
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
Patrick Drury Byrne, Dublin (00353) 1 568 0605;
patrick.drurybyrne@spglobal.com
Research Contributor:Vaishali Singh, CRISIL Global Analytical Center, an S&P affiliate, Mumbai

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