This year's global corporate default tally increased to 71 as of Aug. 7, 2019, after Texas-based oil and gas exploration and production company Halcón Resources Corp. filed for Chapter 11 bankruptcy (see "Halcón Resources Corp. Downgraded To 'D' From 'CC' After Voluntarily Filing For Chapter 11 Bankruptcy," Aug. 7, 2019). Oil and gas defaults total 14 so far this year, up significantly from the 2018 full-year total of just 12 defaults.
Chart 1
This Week's Observations
- Of the 14 oil and gas defaulters so far in 2019, 12 are from the U.S., one is from Europe, and one is from Canada.
- The majority of defaults so far in 2019 are from the U.S., with 69% of all global corporate defaults.
- For the third year in a row, distressed exchanges lead the default tally with 22, followed by missed interest payments with 21.
Chart 2
Table 1
We Estimate The U.S. 12-Month-Trailing Speculative-Grade Default Rate To Remain At 2.4% | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Region | 12-month-trailing speculative-grade default rate (%) | 2019 year-to-date default tally | 2018 year-to-date default tally | 2018 default tally | Weakest links tally | |||||||
U.S. | 2.4* | 49 | 33 | 47 | 162 | |||||||
Emerging market | 1.5 | 11 | 11 | 17 | 32 | |||||||
Europe | 2.0* | 8 | 7 | 13 | 29 | |||||||
Other developed | 2.6 | 3 | 3 | 5 | 4 | |||||||
Global | 2.1 | 71 | 54 | 82 | 227 | |||||||
*Trailing-12-month default rates from July 31, 2018-July 31, 2019, are preliminary and subject to change. Year-to-date data as of Aug. 7, 2019. Weakest link data are as of June 24, 2019. Other developed region includes Australia, Canada, Japan, and New Zealand. Default counts may include confidentially rated issuers. Sources: S&P Global Fixed Income Research and S&P Global Market Intelligence’s CreditPro®. |
Chart 3
Chart 4
Table 2
Halcon Resources Corp. Becomes The Latest On A Long List Of Oil And Gas Defaulters This Year | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Date | Parent company | Country | Subsector | To | From | Reason | ||||||||
1/2/2019 |
Ultra Petroleum Corp |
U.S. | Oil and gas | SD | CC | Distressed exchange | ||||||||
1/8/2019 | Confidential | Confidential | Telecommunications | D | CCC | Confidential | ||||||||
1/15/2019 |
API Heat Transfer Co. |
U.S. | Capital goods | SD | CCC- | Distressed exchange | ||||||||
1/16/2019 |
Shopko Stores Inc. |
U.S. | Retail/restaurants | D | NR | Chapter 11 | ||||||||
1/16/2019 |
Pacific Gas and Electric Co. (PG&E Corp.) |
U.S. | Utilities | D | CC | Missed interest payments | ||||||||
1/18/2019 |
Ditech Holding Corp. |
U.S. | Finance companies | SD | CCC | Missed interest payments | ||||||||
1/29/2019 |
PG&E Corp. |
U.S. | Utilities | D | CC | Chapter 11 | ||||||||
1/30/2019 |
Eletson Holdings Inc. |
Liberia | Transportation | SD | CCC | Missed interest payments | ||||||||
1/31/2019 |
New Look Retail Group Ltd. |
U.K. | Retail/restaurants | SD | CC | Distressed exchange | ||||||||
2/1/2019 |
Tsesnabank |
Kazakhstan | Bank | SD | B- | Distressed exchange/out-of-court restructuring | ||||||||
2/4/2019 | Confidential | Confidential | Homebuilders/real estate companies | D | CCC- | Confidential | ||||||||
2/4/2019 |
Charlotte Russe Inc. |
U.S. | Retail/restaurants | D | CCC- | Chapter 11 | ||||||||
2/6/2019 |
TRM Holdings Corp. |
U.S. | Retail/restaurants | D | NR | Chapter 11 | ||||||||
2/7/2019 |
Fuse Media Inc. |
U.S. | Media and entertainment | D | CC | Missed interest payments | ||||||||
2/7/2019 |
Hornbeck Offshore Services Inc. |
U.S. | Oil and gas | SD | CC | Distressed exchange | ||||||||
2/10/2019 |
Trident Holding Co. LLC |
U.S. | Health care | D | NR | Chapter 11 | ||||||||
2/19/2019 |
Payless Inc. |
U.S. | Retail/restaurants | D | CCC- | Chapter 11 | ||||||||
2/21/2019 |
Novasep Holding S.A.S. |
France | Health care | SD | CC | Distressed exchange | ||||||||
2/21/2019 |
One Call Corp. (One Call Care Management Inc.) |
U.S. | Insurance | SD | CC | Distressed exchange/out-of-court restructuring | ||||||||
2/26/2019 |
Windstream Holdings Inc. |
U.S. | Telecommunications | D | CCC- | Chapter 11 | ||||||||
3/8/2019 |
Affinion Group Holdings Inc. |
U.S. | Media and entertainment | SD | CCC- | Missed interest payments | ||||||||
3/11/2019 |
CTI Foods Holding Co. LLC |
U.S. | Consumer products | D | CCC- | Chapter 11 | ||||||||
3/15/2019 |
Imperial Metals Corp. |
Canada | Metals, mining, and steel | SD | CCC- | Missed interest payments | ||||||||
3/15/2019 |
Cloud Peak Energy Resources LLC |
U.S. | Metals, mining, and steel | SD | CCC | Missed interest payments | ||||||||
3/15/2019 |
PHI Inc. |
U.S. | Oil and gas | D | CCC- | Chapter 11 | ||||||||
3/20/2019 |
Nyrstar N.V. |
Belgium | Metals, mining, and steel | SD | CCC+ | Missed interest payments | ||||||||
3/21/2019 |
Murray Energy Corp. |
U.S. | Metals, mining, and steel | SD | CCC+ | Distressed exchange | ||||||||
3/28/2019 |
Evergreen AcqCo1 LP d/b/a Savers |
U.S. | Retail/restaurants | SD | CCC | Distressed exchange | ||||||||
3/29/2019 | Confidential | Confidential | High technology | D | CCC- | Confidential | ||||||||
4/1/2019 |
Hexion Inc. |
U.S. | Chemicals, packaging, and environmental services | D | CCC | Chapter 11 | ||||||||
4/1/2019 |
Southcross Energy Partners L.P. |
U.S. | Utilities | D | NR | Chapter 11 | ||||||||
4/2/2019 |
Sungard Availability Services Capital Inc. |
U.S. | High technology | D | CCC+ | Chapter 11 | ||||||||
4/2/2019 |
Monitronics International Inc. |
U.S. | Media and entertainment | SD | CC | Missed interest payments | ||||||||
4/3/2019 |
Maxcom Telecomunicaciones S.A.B. de C.V. |
Mexico | Telecommunications | SD | CCC+ | Distressed exchange | ||||||||
4/3/2019 |
Bellatrix Exploration Ltd. |
Canada | Oil and gas | D | CCC | Missed interest payments | ||||||||
4/4/2019 |
Debenhams PLC |
U.K. | Retail/restaurants | SD | CC | Distressed exchange | ||||||||
4/4/2019 |
Fusion Connect Inc. |
U.S. | Telecommunications | D | B | Missed interest payments | ||||||||
4/5/2019 |
Curvature Inc. |
U.S. | High technology | SD | CCC+ | Distressed exchange | ||||||||
4/12/2019 |
MIE Holdings Corp. |
Cayman Islands | Oil and gas | SD | CC | Distressed exchange | ||||||||
4/14/2019 |
Jones Energy Inc. |
U.S. | Oil and gas | D | NR | Chapter 11 | ||||||||
4/15/2019 |
Crossmark Holdings Inc. |
U.S. | Consumer products | SD | CC | Missed interest payments | ||||||||
4/16/2019 |
Bristow Group Inc. |
U.S. | Oil and gas | D | CCC- | Missed interest payments | ||||||||
5/1/2019 | Confidential | Confidential | Media and entertainment | D | NR | Confidential | ||||||||
5/2/2019 |
Senvion Holding GmbH (Suzlon Energy Ltd.) |
Germany | Capital goods | SD | CC | Missed interest payments | ||||||||
5/2/2019 |
Parq Holdings Ltd. Partnership |
Canada | Media and entertainment | SD | CCC | Missed interest payments | ||||||||
5/6/2019 |
Hospital Acquisition LLC (dba LCI Holding Co. LLC) |
U.S. | Health care | D | NR | Chapter 11 | ||||||||
5/9/2019 |
Preferred Proppants LLC |
U.S. | Metals, mining, and steel | D | CCC+ | Distressed exchange | ||||||||
5/22/2019 |
USJ Acucar e Alcool S/A |
Brazil | Consumer products | SD | CC | Distressed exchange | ||||||||
5/27/2019 | Confidential | Confidential | Chemicals, packaging, and environmental services | SD | CCC | Confidential | ||||||||
5/28/2019 |
White Star Petroleum Holdings, LLC |
U.S. | Oil and gas | D | NR | Chapter 11 | ||||||||
5/31/2019 |
Sheridan Investment Partners II LP (Sheridan Holding Co II LLC) |
U.S. | Finance companies | SD | CCC- | Missed interest payments | ||||||||
5/31/2019 |
Sheridan Investment Partners I LLC (Sheridan Holding Co I, LLC) |
U.S. | Finance companies | SD | CCC- | Distressed exchange | ||||||||
6/3/2019 | Confidential | Confidential | Media and entertainment | D | NR | Confidential | ||||||||
6/3/2019 |
FTD Inc. |
U.S. | Retail/restaurants | D | NR | Chapter 11 | ||||||||
6/4/2019 |
Legacy Reserves LP |
U.S. | Oil and gas | D | CCC- | Missed interest payments | ||||||||
6/11/2019 |
Neiman Marcus Group LLC (The) |
U.S. | Retail/restaurants | SD | CC | Distressed exchange/ out-of-court restructuring | ||||||||
6/14/2019 |
New Academy Holding Co. LLC |
U.S. | Retail/restaurants | SD | CCC+ | Distressed exchange | ||||||||
6/19/2019 |
Denbury Resources Inc. |
U.S. | Oil and gas | SD | CC | Distressed exchange | ||||||||
6/21/2019 | Confidential | Confidential | Transportation | SD | CC | Confidential | ||||||||
6/21/2019 |
Galapagos Holding S.A. |
Luxembourg | Capital goods | SD | CC | Missed interest payments | ||||||||
6/24/2019 | Confidential | Confidential | Health care | D | NR | Confidential | ||||||||
6/26/2019 |
Cell C (Pty) Ltd. |
South Africa | Telecommunications | SD | CCC- | Distressed exchange | ||||||||
6/28/2019 |
Mood Media Corp. |
U.S. | Media and entertainment | SD | CC | Distressed exchange | ||||||||
7/2/2019 |
Weatherford International plc |
Ireland | Oil and gas | D | CC | Chapter 11 | ||||||||
7/3/2019 |
PES Holdings, LLC |
U.S. | Oil and gas | D | B- | Missed interest payments | ||||||||
7/11/2019 |
Stearns Holdings LLC |
U.S. | Finance companies | D | CCC+ | Chapter 11 | ||||||||
7/12/2019 | Confidential | Confidential | Homebuilders/real estate companies | SD | CC | Confidential | ||||||||
7/18/2019 |
American Energy Permian Holdings LLC |
U.S. | Oil and gas | D | CC | Missed interest payments | ||||||||
7/23/2019 |
99 cents only stores LLC |
U.S. | Retail/restaurants | SD | CC | Distressed exchange | ||||||||
7/23/2019 |
Avianca Holdings S.A. |
Panama | Transportation | SD | CCC+ | Missed principal payments | ||||||||
8/7/2019 |
Halcon Resources Corp. |
U.S. | Oil and gas | SD | CC | Chapter 11 | ||||||||
NR--Not rated. SD--Selective default. Data as of Aug. 7, 2019. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®. |
Default Studies
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2018 Annual Taiwan Ratings Corp. Corporate Default And Rating Transition Study
- 2018 Annual Global Corporate Default And Rating Transition Study
- 2018 Annual U.S. Corporate Default And Rating Transition Study
- 2018 Annual Asia Corporate Default And Rating Transition Study
- Japanese Issuer Credit Rating Transitions Study 2018
- 2017 Annual Australia And New Zealand Corporate Default Study And Rating Transitions
- 2017 Inaugural Infrastructure Default Study And Rating Transitions
- 2017 Mexican National-Scale Corporate And Public Finance Default Study And Rating Transitions
- 2017 Annual Emerging Markets Corporate Default Study And Rating Transitions
- 2017 Annual European Corporate Default Study And Rating Transitions
- 2017 Annual Canadian Corporate Default Study And Rating Transitions
- 2017 Inaugural Nordic Default Study And Rating Transitions
- 2017 Annual Brazil Corporate Default Study And Rating Transitions
- 2017 Annual Greater China Corporate Default Study And Rating Transitions
- 2017 Annual Global Financial Services Default Study And Rating Transitions
- 2017 Annual Latin American Corporate Default Study And Rating Transitions
Structured finance
- 2018 Annual Global Leveraged Loan CLO Default And Rating Transition Study
- 2018 Annual Taiwan Structured Finance Default Study And Rating Transitions
- 2018 Annual Global Structured Finance Default Study And Rating Transitions
- 2018 Annual Japanese Structured Finance Default Study And Rating Transitions
- 2017 Annual Mexican Structured Finance Default Study And Rating Transitions
- 2017 Annual European Structured Finance Default Study And Rating Transitions
U.S. public finance
- 2018 Annual U.S. Public Finance Default Study And Rating Transitions
- 2017 Annual U.S. Public Finance Not-For-Profit Health Care Default Study And Rating Transitions
- 2017 U.S. Public Finance Utility Default Study And Rating Transitions
- 2017 U.S. Public Finance Transportation Default Study And Rating Transitions
- 2017 Annual U.S. Public Finance Housing Default Study And Rating Transitions
- 2017 Annual U.S. Public Finance Charter School Default Study And Rating Transitions
- 2017 Annual U.S. Public Finance Higher Education And Nonprofit Organization Default Study And Rating Transitions
Sovereign and international public finance
- 2018 Annual Sovereign Default And Rating Transition Study
- 2017 Annual International Public Finance Default Study And Rating Transitions
This report does not constitute a rating action.
Credit Markets Research: | Nicole Serino, Associate, New York + 1 (212) 438 1396; nicole.serino@spglobal.com |
Sudeep K Kesh, Senior Director, New York (1) 212-438-7982; sudeep.kesh@spglobal.com | |
Research Contributor: | Lyndon Fernandes, CRISIL Global Analytical Center, an S&P affiliate, Mumbai |
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