Key Takeaways
- As of Nov. 30, 2022, the global corporate default tally was at 77, which is five defaults above the year-to-date 2021 tally.
- Defaults are currently 15% above year-to-date 2021 levels, but well below the comparable five-year average.
- Consumer-driven sectors led defaults in November, accounting for four defaults out of eight for the month, as some companies faced weaker demand and persistent cost inflation amid unfavorable macroeconomic conditions.
- Distressed exchanges remain the leading reason for defaults this year, contributing to 42% of defaults globally.
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
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
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
Chart 4
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
- Corestate Capital Holding S.A. Downgraded To 'D' Following Missed Payment And Agreed Bond Restructuring, Nov. 29, 2022
- Greenland Holding's Offshore Note Downgraded To 'D' On Completion Of Distressed Maturity Extension, Nov. 25, 2022
- The U.S. Speculative-Grade Corporate Default Rate Could Reach 3.75% By September 2023, Nov. 21, 2022
- Neovia Logistics L.P. Ratings Lowered To 'D' On Completion Of Distressed Exchange, Nov. 18, 2022
- The European Speculative-Grade Corporate Default Rate Could Rise To 3.25% By September 2023 As Downside Risks Rise, Nov. 17, 2022
- Canopy Growth Corp. Downgraded To 'SD' From ‘CC’ On Completion Of First Tranche Of Distressed Debt Repayment, Nov. 16, 2022
- L1R HB Finance, Holland & Barrett's Parent, Downgraded To 'SD' And Debt To 'D'; Ratings Withdrawn At Issuer's Request, Nov. 16, 2022
- Bed Bath & Beyond Inc. Downgraded To 'SD' From 'CC' On Distressed Exchange; Debt Rating Lowered To 'D', Nov. 14, 2022
- Vericast Corp. Downgraded To 'SD' On Completion Of Distressed Exchange, Nov. 7, 2022
Default Studies
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2021 Annual Global Financial Services Default And Rating Transition Study
- 2021 Annual Global Corporate Default And Rating Transition Study
- 2021 Annual U.S. Corporate Default And Rating Transition Study
- 2021 Annual Japanese Corporate Default And Rating Transition Study
- 2021 Annual European Corporate Default And Rating Transition Study
- 2021 Annual Asia Corporate Default And Rating Transition Study
- 2021 Annual Taiwan Ratings Corp. Corporate Default And Rating Transition Study
- 2020 Annual Greater China Corporate Default And Rating Transition Study
- 2021 Annual Emerging And Frontier Markets Corporate Default And Rating Transition Study
Structured finance
- 2021 Global Structured Finance Default And Rating Transition Study
- 2021 Annual Japanese Structured Finance Default And Rating Transition Study
- 2021 Annual European Structured Finance Default And Rating Transition Study
- 2021 Annual Taiwan Structured Finance Default And Rating Transition Study
- 2021 Annual Mexican Structured Finance Default And Rating Transition Study
- 2021 Annual Global Leveraged Loan CLO Default And Rating Transition Study
Public finance
- 2021 Annual U.S. Public Finance Default And Rating Transition Study
- 2021 Annual International Public Finance Default And Rating Transition Study
- 2020 Annual Mexican National Scale Corporate And Public Finance Default And Rating Transition Study
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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