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Default, Transition, and Recovery: Weakest Links Rise Among U.S. Health Care Service Providers

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Credit Trends: Global Refinancing: Uncertain Conditions Heighten Maturity Risk

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Default, Transition, and Recovery: Corporate Default Forecasts Maintained, But Risks Are Rising


Default, Transition, and Recovery: Weakest Links Rise Among U.S. Health Care Service Providers

The global tally of weakest links (issuers rated 'B-' or lower by S&P Global Ratings with negative outlooks or ratings on CreditWatch with negative implications) remained at 227 as of July 22, 2019, following 10 removals and 10 additions since the previous month's report.

Chart 1

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Risk Is Growing For Health Care

The number of health care weakest links has been gradually growing since February 2017: At this point in 2017, there were only eight weakest links in the sector, compared to 11 as of July 2018 and 18 as of July 2019. Of the current tally of health care weakest links, 83% are U.S. health care service providers. The median rating for the U.S. health care sector has fallen by one notch since the beginning of 2016, to 'B' from 'BB-' (see "A Weakening Economic Outlook And High Leverage Raise Global Corporate Downgrade Prospects," July 30, 2019).

In the U.S., which leads with 164 weakest links (72%), health care issuers led the additions to the tally in July. Contract development and manufacturing organizations Albany Molecular Research Inc. and Alcami Corp. were added after being downgraded due to declining revenues and lower-than-expected cash flows. The U.S. generic pharmaceutical sector, which includes companies like Alcami, has seen a number of negative rating actions in 2019. Generic price deflation in the U.S. market, the largest generic drug market in the world, has hurt generic drug companies' EBITDA and cash flows, leading to higher-than-expected leverage for longer periods and contributing to negative ratings actions in the sector (see "The Health Care Credit Beat: Has The U.S. Generic Pharma Sector Hit Rock Bottom?" July 31, 2019).

The percentage of speculative-grade issues in health care has been increasing since 2017 (see chart 3) as ratings have continued to decline due to chronic reimbursement pressure, an accelerating focus on value and quality, and a rapidly changing competitive environment that has led to falling patient volumes at hospitals, all of which have continued to pressure the industry (see "Industry Top Trends 2019: Health Care," Nov. 15, 2018).

Chart 2

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Chart 3

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Weakest Links In July

The U.S. region leads with 72.2% of weakest links as of July 22 (see table 1). By volume, the 164 U.S.-based weakest links account for $257 billion, or 77%, of the total debt of weakest links. Europe has the second-highest concentration of weakest links, with 27 (12%) and total debt of $65.7 billion. By sector, consumer products companies lead weakest links with 44 (see chart 4).

Chart 4

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Table 1

Weakest Links By Region
Weakest links tally Current distribution (%) Distribution 12 months ago (%)
U.S. 164 72.20 74.70
Europe 27 11.90 10.00
Latin America 13 5.70 4.20
Asia-Pacific 13 5.70 2.10
EEMEA 6 2.60 5.30
Canada 4 1.80 3.70
EEMEA--Eastern Europe, Middle East, and Africa. Data as of July 22, 2019. Source: S&P Global Ratings Research.

Table 2

40% Of The Removals In July Are From Europe
Weakest Link Removals
Issuer Sector Region Reasons for removal

Photonis Technologies SAS

Aerospace and defense Europe Upgraded and outlook or CreditWatch change

Quality Distribution Inc.

Transportation U.S. Outlook or CreditWatch change

Weatherford International PLC

Oil and gas Europe Defaulted

Dogus Holding A.S.

Financial institutions EEMEA Criteria

Vue International Bidco PLC

Media and entertainment Europe Outlook or CreditWatch change

Monitchem Holdco 2 S.A.

Chemicals, packaging, and environmental services Europe Outlook or CreditWatch change

Stearns Holdings LLC

Financial institutions U.S. Defaulted
Ukrainian Railway PJSC Utility EEMEA Outlook or CreditWatch change

American Energy - Permian Basin LLC

Oil and gas U.S. Defaulted

Dr. Peng Telecom & Media Group Co. Ltd.

Telecommunications Asia-Pacific Rating withdrawn
EEMEA--Eastern Europe, Middle East, and Africa. Data as of July 22, 2019. Source: S&P Global Ratings Research.

Table 3

High Tech And Health Care Led The Additions In July
Weakest Link Additions
Issuer Sector Region Reason for addition

4L Technologies Inc.

High technology U.S. Downgraded and outlook or CreditWatch change

Denbury Resources Inc.

Oil and gas U.S. Newly rated issuer

Albany Molecular Research Inc.

Health care U.S. Downgraded

Lecta S.A.

Forest products and building materials Europe Downgraded and outlook or CreditWatch change

Idemia France SAS

High technology Europe Outlook or CreditWatch change

Geo Energy Resources Ltd.

Metals, mining, and steel Asia-Pacific Downgraded and outlook or CreditWatch change

PT Delta Merlin Dunia Textile

Consumer products Asia-Pacific Downgraded and outlook or CreditWatch change

Alcami Corp.

Health care U.S. Downgraded and outlook or CreditWatch change

Hema B.V.

Retail/restaurants Europe Outlook or CreditWatch change

PHL Variable Insurance Co.

Insurance U.S. Downgraded and outlook or CreditWatch change
Data as of July 22, 2019. Source: S&P Global Ratings Research.

Appendix

We closely monitor the issues S&P Global Ratings rates 'B-' or lower because, in our view, these demonstrate investors' appetite (or lack thereof) for absorbing riskier assets. Issuers at this end of the ratings spectrum are usually more prone to default and are often the first to lose access to financing when market liquidity recedes.

Over the long term (1981-2018), an average of 6.75% of all global issuers rated 'B-' defaulted within 12 months, and the average default rate was much higher for issuers rated lower than 'B-'. The average 12-month transition to default declines for higher-rated issuers (for example, 2.00% for issuers rated 'B+' and 0.95% for issuers rated 'BB-').

A spike in issuance rated 'B-' or lower in 1997-1999 led to an increase in defaults in 2001. During this period, the share of speculative-grade-rated companies with issues rated 'B-' or lower consistently exceeded 30%. An increase in issues rated 'B-' or lower in 2003-2007 was an early warning sign of the credit deterioration and default risk in 2008 and 2009. For more details, please see "2018 Annual Global Corporate Default And Rating Transition Study," published April 10, 2019.

Chart 5

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Chart 6

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Table 4

The Consumer Products Sector Has The Highest Concentration Of Weakest Link CLO Constituents
Weakest Links Listed In The Top 250 Corporate Obligors In Outstanding Rated U.S. Cash Flow CLOs
Organization Rank in U.S. CLO transactions Outlook/CreditWatch Applied rating Sector/subsector

Advantage Sales & Marketing Inc.

33 Negative B- Consumer products

Riverbed Parent Inc.

101 Negative B- High technology

Petco Holdings Inc.

118 Negative CCC+ Retail/restaurants

Serta Simmons Bedding LLC

143 Negative CCC+ Consumer products

Alphabet Holding Co. Inc.

162 Negative B- Consumer products

Revlon Inc.

191 Negative CCC+ Consumer products

Ascena Retail Group Inc.

198 Negative CCC+ Consumer products

Idemia France SAS

209 Negative B- High technology

DTI Holdco Inc.

213 Negative B- Media and entertainment

New Academy Holding Co. LLC

232 Negative CCC+ Retail/restaurants
CLO--Collateralized loan obligation. Data as of July 22, 2019. Source: S&P Global Ratings Research.

Table 5

The Largest Share (19.6%) Of Weakest Links Were Downgraded To 'B-' From 'B'
Weakest Links: Current Rating Versus Previous Rating
(%)
Rating B- CCC+ CCC CCC- CC C
BB+ 0.00 0.00 0.00 0.00 0.00 0.00
BB 0.00 0.00 0.00 0.00 0.00 0.00
BB- 0.00 0.00 0.00 0.00 0.00 0.00
B+ 4.00 1.78 0.00 0.00 0.00 0.00
B 19.56 11.11 6.67 1.78 0.89 0.00
B- 13.33 12.00 3.56 1.78 1.78 0.00
CCC+ 0.00 2.67 2.67 2.22 0.44 0.00
CCC 0.44 0.44 0.44 0.00 0.00 0.00
CCC- 0.00 0.00 0.00 0.00 0.00 0.00
CC 0.00 0.00 0.00 0.00 0.00 0.00
C 0.00 0.00 0.00 0.00 0.00 0.00
SD 0.44 2.22 1.78 0.89 0.89 0.00
D 0.00 0.44 0.00 0.00 0.00 0.00
Other* 2.22 2.22 1.33 0.00 0.00 0.00
*Entities that are newly rated or were previously not rated. SD--Selective default. Data as of July 22, 2019. Source: S&P Global Ratings Research.

Table 6

The Largest Portion Of Weakest Links Were Downgraded By Multiple Notches
Matrix Summary
(%)
Magnitude of rating change Upgraded Downgraded Unchanged*
One notch 0.44 34.22 --
Multiple notches 0.44 36.00 --
Unchanged* -- -- 16.44
Note: Excludes transition to/from 'D', 'SD' (selective default), newly rated, and not rated. *Only CreditWatch or outlook changed. Source: S&P Global Ratings Research.

Chart 7

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Chart 8

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Table 7

Among U.S. Industries, Energy Has The Highest Default Rate
Trailing-12-Month Corporate Default Rates By Industry (U.S. Speculative-Grade Issuers Only)
(%) June 30, 2019 May 31, 2019 Six months ago 12 months ago
Financial
Financial institutions 4.12 4.21 1.09 2.11
Insurance 1.67 1.67 0.00 1.64
Nonfinancial
Aerospace/auto/capital goods/metals 1.21 1.22 0.85 1.30
Consumer/service 3.67 3.36 4.12 5.94
Energy and natural resources 6.63 6.19 7.39 9.30
Forest and building products/homebuilders 0.00 0.00 2.13 3.16
Health care/chemicals 0.44 1.35 1.96 2.06
High tech/computers/office equipment 2.05 2.06 1.09 0.57
Leisure time/media 2.22 1.80 2.26 1.79
Real estate 0.00 0.00 0.00 0.00
Telecommunications 2.70 2.70 2.82 1.35
Transportation 0.00 0.00 0.00 0.00
Utilities 0.00 0.00 0.00 0.00
Note: U.S. default rate includes issuers incorporated in U.S. tax havens--e.g., Bermuda and the Cayman Islands. Data as of June 30, 2019. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Table 8

Historical Default Cycle Characteristics
--Default cycle-- --Default rate (%)-- --Default rate change (%)--
Trough Peak Length (years) At trough At peak Trough to peak 12 months after trough
5/31/1989 7/31/1991 2.17 2.64 12.54 9.90 3.81
3/31/1995 3/31/1996 1.00 1.68 4.06 2.38 2.38
4/30/1997 4/30/2002 5.00 1.31 10.82 9.51 1.71
12/31/2007 11/30/2009 1.90 1.00 11.50 10.50 3.09
Average 2.52 1.66 9.73 8.07 2.75
Source: S&P Global Ratings Research.

Chart 9

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Chart 10

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Chart 11

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Table 9

Issuers Rated 'B-' Or Lower With Negative Outlooks Or Ratings On CreditWatch With Negative Implications
Rating Outlook/CreditWatch Subsector Issuer Parent company New to the list this month Outlook/CreditWatch change Debt (mil. US$) Country Region
B- CreditWatch negative Capital goods

Jain Irrigation Systems Ltd.

200 India Asia/Pacific
B- CreditWatch negative Media and entertainment

Deluxe Entertainment Services Group Inc.

880 U.S. U.S.
B- Outlook negative Aerospace and defense Constellis Holdings LLC 1,087 U.S. U.S.
B- Outlook negative Automotive

Accuride Corp.

363 U.S. U.S.
B- Outlook negative Automotive GC EOS Buyer Inc. 875 U.S. U.S.
B- Outlook negative Automotive K&N Parent Inc. 345 U.S. U.S.
B- Outlook negative Automotive

SK HoldCo LLC

1,370 U.S. U.S.
B- Outlook negative Automotive Tesla Inc. 5,998 U.S. U.S.
B- Outlook negative Capital goods

CLISA-Compania Latinoamericana de Infraestructura & Servicios S.A.

318 Argentina Latin America
B- Outlook negative Capital goods

Elion Resources Group Co. Ltd.

- China Asia/Pacific
B- Outlook negative Capital goods Infrastructure and Energy Alternatives Inc. - U.S. U.S.
B- Outlook negative Capital goods

PowerTeam Services LLC

2,190 U.S. U.S.
B- Outlook negative Capital goods

Praesidiad Group Ltd.

355 U.K. Europe
B- Outlook negative Consumer products

Advantage Sales & Marketing Inc.

3,345 U.S. U.S.
B- Outlook negative Consumer products Alphabet Holding Co. Inc. 3,800 U.S. U.S.
B- Outlook negative Consumer products Badger Finance LLC Badger Intermediate Holdings LLC 2,252 U.S. U.S.
B- Outlook negative Consumer products

Corporacion Azucarera del Peru S. A.

325 Peru Latin America
B- Outlook negative Consumer products

Fetch Holdco LLC

- U.S. U.S.
B- Outlook negative Consumer products

Frigoglass SAIC

200 Greece Europe
B- Outlook negative Consumer products

Grupo Kaltex, S.A. de C.V.

320 Mexico Latin America
B- Outlook negative Consumer products

KNEL Acquisition LLC

465 U.S. U.S.
B- Outlook negative Consumer products Output Services Group Inc. Yes 827 U.S. U.S.
B- Outlook negative Consumer products P&L Development Holdings LLC 313 U.S. U.S.
B- Outlook negative Consumer products

S.A. Usina Coruripe Acucar e Alcool

- Brazil Latin America
B- Outlook negative Consumer products

Yihua Enterprise (Group) Co. Ltd.

250 China Asia/Pacific
B- Outlook negative Chemicals, packaging, and environmental services

Anchor Glass Container Corp.

800 U.S. U.S.
B- Outlook negative Chemicals, packaging, and environmental services

Dunn Paper Holdings Inc.

350 U.S. U.S.
B- Outlook negative Chemicals, packaging, and environmental services

EnergySolutions Inc.

650 U.S. U.S.
B- Outlook negative Chemicals, packaging, and environmental services Fort Dearborn Holding Co. Inc. 625 U.S. U.S.
B- Outlook negative Chemicals, packaging, and environmental services

Kleopatra Holdings 1 S.C.A.

2,092 Luxembourg Europe
B- Outlook negative Chemicals, packaging, and environmental services

Shandong Yuhuang Chemical Co. Ltd.

300 China Asia/Pacific
B- Outlook negative Financial institutions

Banco Fibra S.A.

- Brazil Latin America
B- Outlook negative Financial institutions

Bank Audi S.A.L.

- Lebanon Eastern Europe/Middle East/Africa
B- Outlook negative Financial institutions Bankmed, s.a.l. - Lebanon Eastern Europe/Middle East/Africa
B- Outlook negative Financial institutions

Blom Bank sal

- Lebanon Eastern Europe/Middle East/Africa
B- Outlook negative Financial institutions

Nurbank JSC

42 Kazakhstan Eastern Europe/Middle East/Africa
B- Outlook negative Financial institutions

OCWEN Financial Corp.

702 U.S. U.S.
B- Outlook negative Forest products and building materials

Lecta S.A.

Yes 1,347 Luxembourg Europe
B- Outlook negative Forest products and building materials The New Home Co. Inc. 325 U.S. U.S.
B- Outlook negative Health care

Aenova Holding GmbH

1,334 Germany Europe
B- Outlook negative Health care

Albany Molecular Research Inc.

Yes 1,720 U.S. U.S.
B- Outlook negative Health care

Alliance HealthCare Services

525 U.S. U.S.
B- Outlook negative Health care

Aveanna Healthcare LLC

Aveanna Healthcare Holdings Inc. 996 U.S. U.S.
B- Outlook negative Health care

BioClinica Holding I LP

2,620 U.S. U.S.
B- Outlook negative Health care HC Group Holdings III Inc. 565 U.S. U.S.
B- Outlook negative Health care Heartland Dental LLC Hadrian Merger Sub Inc. 1,610 U.S. U.S.
B- Outlook negative Health care

Lannett Co. Inc.

1,060 U.S. U.S.
B- Outlook negative Health care

Medical Depot Holdings Inc.

1,194 U.S. U.S.
B- Outlook negative Health care Turnstone Midco 2 Ltd. 781 U.K. Europe
B- Outlook negative High technology

Diebold Nixdorf Inc.

4,109 U.S. U.S.
B- Outlook negative High technology Digital River Inc. 335 U.S. U.S.
B- Outlook negative High technology

Idemia France SAS

Yes 6,943 France Europe
B- Outlook negative High technology Riverbed Parent Inc. 2,150 U.S. U.S.
B- Outlook negative High technology

Tunghsu Group Co. Ltd.

390 China Asia/Pacific
B- Outlook negative Insurance

ENSA Seguros de Angola S.A.

- Angola Eastern Europe/Middle East/Africa
B- Outlook negative Media and entertainment

Avatar Holdco LLC

- U.S. U.S.
B- Outlook negative Media and entertainment DTI Holdco Inc. 1,195 U.S. U.S.
B- Outlook negative Media and entertainment

Exela Technologies Inc.

2,396 U.S. U.S.
B- Outlook negative Media and entertainment

Infogroup Inc.

250 U.S. U.S.
B- Outlook negative Media and entertainment

IRI Holdings Inc.

1,600 U.S. U.S.
B- Outlook negative Media and entertainment

Richmond UK Holdco Ltd.

1,688 U.K. Europe
B- Outlook negative Media and entertainment

Tornante - MDP Joe Holding LLC

135 U.S. U.S.
B- Outlook negative Media and entertainment

Travelex Holdings Ltd.

517 U.K. Europe
B- Outlook negative Metals, mining, and steel

Ferroglobe PLC

Grupo Villar Mir S.A.U. - U.K. Europe
B- Outlook negative Metals, mining, and steel

Geo Energy Resources Ltd.

Yes 300 Singapore Asia/Pacific
B- Outlook negative Metals, mining, and steel

Hecla Mining Co.

500 U.S. U.S.
B- Outlook negative Metals, mining, and steel

International Wire Group Holdings Inc.

260 U.S. U.S.
B- Outlook negative Metals, mining, and steel

Petropavlovsk PLC

- U.K. Europe
B- Outlook negative Oil and gas

Basic Energy Services Inc.

300 U.S. U.S.
B- Outlook negative Oil and gas Ensco Rowan plc 10,050 U.K. Europe
B- Outlook negative Oil and gas

Era Group Inc.

200 U.S. U.S.
B- Outlook negative Oil and gas Gulf Finance LLC 1,150 U.S. U.S.
B- Outlook negative Oil and gas Permian Production Partners LLC FCP II Holdings LLC 300 U.S. U.S.
B- Outlook negative Oil and gas Profrac Services LLC 180 U.S. U.S.
B- Outlook negative Oil and gas

Transocean Ltd.

10,446 Switzerland Europe
B- Outlook negative Oil and gas

Vallourec

2,076 France Europe
B- Outlook negative Oil and gas

Vesta Energy Corp.

153 Canada Canada
B- Outlook negative Retail/restaurants Grupo Famsa, S.A.B. de C.V. 250 Mexico Latin America
B- Outlook negative Retail/restaurants

Hema B.V.

AMEH XXVI B.V.

Yes 112 Netherlands Europe
B- Outlook negative Retail/restaurants

Red Lobster Intermediate Holdings LLC

380 U.S. U.S.
B- Outlook negative Retail/restaurants

Rite Aid Corp.

2,700 U.S. U.S.
B- Outlook negative Telecommunications Cologix Holdings Inc. 425 U.S. U.S.
B- Outlook negative Telecommunications

Cyxtera DC Holdings Inc.

1,225 U.S. U.S.
B- Outlook negative Telecommunications

DISH DBS Corp.

DISH Network Corp.

11,750 U.S. U.S.
B- Outlook negative Telecommunications GCI LLC GCI Liberty Inc. 1,531 U.S. U.S.
B- Outlook negative Telecommunications

Tele Columbus AG

1,700 Germany Europe
B- Outlook negative Transportation

Dynagas LNG Partners LP

480 Marshall Islands Asia/Pacific
B- Outlook negative Transportation

International Seaways Inc.

1,150 Marshall Islands Asia/Pacific
B- Outlook negative Transportation United States Shipping Corp. 220 U.S. U.S.
B- Outlook negative Utilities

Terra-Gen Finance Co. LLC

Terra-Gen Power Holding II LLC

325 U.S. U.S.
CCC+ CreditWatch negative Metals, mining, and steel

Qinghai Provincial Investment Group Co. Ltd.

850 China Asia/Pacific
CCC+ CreditWatch negative Transportation

Avianca Holdings S.A.

1,045 Panama Latin America
CCC+ CreditWatch negative Utilities Crockett Cogeneration, A California Ltd. Partnership 283 U.S. U.S.
CCC+ CreditWatch negative Utilities

Panda Green Energy Group Ltd.

350 Bermuda U.S.
CCC+ CreditWatch negative Utilities

Topaz Solar Farms LLC

Berkshire Hathaway Inc.

1,100 U.S. U.S.
CCC+ Outlook negative Automotive APC Automotive Technologies Intermediate Holdings LLC 630 U.S. U.S.
CCC+ Outlook negative Automotive

Techniplas LLC

350 U.S. U.S.
CCC+ Outlook negative Capital goods

NESCO LLC

1,050 U.S. U.S.
CCC+ Outlook negative Capital goods

North American Lifting Holdings Inc.

655 U.S. U.S.
CCC+ Outlook negative Consumer products

Ascena Retail Group Inc.

1,800 U.S. U.S.
CCC+ Outlook negative Consumer products

ASP MCS Acquisition Corp.

455 U.S. U.S.
CCC+ Outlook negative Consumer products

Boparan Holdings Ltd.

749 U.K. Europe
CCC+ Outlook negative Consumer products

David's Bridal Inc.

300 U.S. U.S.
CCC+ Outlook negative Consumer products

Dean Foods Co.

700 U.S. U.S.
CCC+ Outlook negative Consumer products Del Monte Foods Inc. 970 U.S. U.S.
CCC+ Outlook negative Consumer products

Deoleo, S.A.

578 Spain Europe
CCC+ Outlook negative Consumer products

Lanai Holdings III Inc.

2,655 U.S. U.S.
CCC+ Outlook negative Consumer products

Never Slip Topco Inc.

283 U.S. U.S.
CCC+ Outlook negative Consumer products New Look Bonds Ltd. - Jersey Eastern Europe/Middle East/Africa
CCC+ Outlook negative Consumer products

Outerstuff LLC

155 U.S. U.S.
CCC+ Outlook negative Consumer products Pyxus International Inc. 995 U.S. U.S.
CCC+ Outlook negative Consumer products

Revlon Inc.

2,750 U.S. U.S.
CCC+ Outlook negative Consumer products

RGIS Holdings LLC

460 U.S. U.S.
CCC+ Outlook negative Consumer products

Serta Simmons Bedding LLC

9,150 U.S. U.S.
CCC+ Outlook negative Consumer products

StoneMor Partners L.P.

350 U.S. U.S.
CCC+ Outlook negative Consumer products

SunOpta Inc.

- Canada Canada
CCC+ Outlook negative Consumer products TMK Hawk Parent, Corp. 820 U.S. U.S.
CCC+ Outlook negative Consumer products

USJ Acucar e Alcool S/A

275 Brazil Latin America
CCC+ Outlook negative Consumer products

Winebow Group LLC

360 U.S. U.S.
CCC+ Outlook negative Chemicals, packaging, and environmental services

Road Infrastructure Investment Holdings Inc.

614 U.S. U.S.
CCC+ Outlook negative Financial institutions

CCF Holdings LLC

319 U.S. U.S.
CCC+ Outlook negative Financial institutions

Corp Group Banking S.A.

Inversiones CorpGroup Interhold, Ltda. 500 Chile Latin America
CCC+ Outlook negative Health care Alcami Corp. Yes 1,425 U.S. U.S.
CCC+ Outlook negative Health care CDRH Parent Inc. 1,590 U.S. U.S.
CCC+ Outlook negative Health care

Community Health Systems Inc.

20,532 U.S. U.S.
CCC+ Outlook negative Health care Vyaire Medical Inc. 360 U.S. U.S.
CCC+ Outlook negative Health care

YanAn Bicon Pharmaceutical Listed Co.

- China Asia/Pacific
CCC+ Outlook negative High technology

Blackboard Inc.

1,673 U.S. U.S.
CCC+ Outlook negative High technology

Pactera Technology International Ltd.

HNA Group Co. Ltd. - China Asia/Pacific
CCC+ Outlook negative Homebuilders/real estate companies

Hovnanian Enterprises Inc.

1,968 U.S. U.S.
CCC+ Outlook negative Homebuilders/real estate companies

Oceanwide Holdings Co. Ltd.

1,000 China Asia/Pacific
CCC+ Outlook negative Homebuilders/real estate companies

Sunshine 100 China Holdings Ltd.

- Cayman Islands U.S.
CCC+ Outlook negative Insurance

PHL Variable Insurance Co.

Nassau Financial Group, L.P. Yes - U.S. U.S.
CCC+ Outlook negative Media and entertainment

ALM Media LLC

265 U.S. U.S.
CCC+ Outlook negative Media and entertainment

Bioplan USA Inc.

1,040 U.S. U.S.
CCC+ Outlook negative Media and entertainment

CPI Card Group Inc.

435 U.S. U.S.
CCC+ Outlook negative Media and entertainment Diamond Resorts International Inc. 1,990 U.S. U.S.
CCC+ Outlook negative Media and entertainment Intralot S.A. 1,122 Greece Europe
CCC+ Outlook negative Media and entertainment

PGX Holdings Inc.

555 U.S. U.S.
CCC+ Outlook negative Media and entertainment RentPath LLC 662 U.S. U.S.
CCC+ Outlook negative Metals, mining, and steel

Murray Energy Corp.

4,869 U.S. U.S.
CCC+ Outlook negative Oil and gas

Abaco Energy Technologies LLC

170 U.S. U.S.
CCC+ Outlook negative Oil and gas California Resources Corp. 7,821 U.S. U.S.
CCC+ Outlook negative Oil and gas

Chaparral Energy Inc.

300 U.S. U.S.
CCC+ Outlook negative Oil and gas

Denbury Resources Inc.

Yes 4,674 U.S. U.S.
CCC+ Outlook negative Oil and gas

Gavilan Resources LLC

450 U.S. U.S.
CCC+ Outlook negative Oil and gas

Jonah Energy LLC

2,100 U.S. U.S.
CCC+ Outlook negative Oil and gas

Osum Oil Sands Corp.

210 Canada Canada
CCC+ Outlook negative Oil and gas

Pacific Drilling S.A.

1,024 Luxembourg Europe
CCC+ Outlook negative Oil and gas

Pioneer Energy Services Corp.

175 U.S. U.S.
CCC+ Outlook negative Oil and gas

Tapstone Energy LLC

600 U.S. U.S.
CCC+ Outlook negative Oil and gas Ultra Petroleum Corp. 1,547 U.S. U.S.
CCC+ Outlook negative Retail/restaurants Beverages & More Inc. 190 U.S. U.S.
CCC+ Outlook negative Retail/restaurants Burger BossCo Intermediate Inc. 193 U.S. U.S.
CCC+ Outlook negative Retail/restaurants California Pizza Kitchen Inc. 365 U.S. U.S.
CCC+ Outlook negative Retail/restaurants

GNC Holdings Inc.

1,254 U.S. U.S.
CCC+ Outlook negative Retail/restaurants

Guitar Center Holdings Inc.

946 U.S. U.S.
CCC+ Outlook negative Retail/restaurants

New Academy Holding Co. LLC

1,825 U.S. U.S.
CCC+ Outlook negative Retail/restaurants

NPC International Inc.

765 U.S. U.S.
CCC+ Outlook negative Retail/restaurants Penney (J.C.) Co. Inc. 6,568 U.S. U.S.
CCC+ Outlook negative Retail/restaurants

Petco Holdings Inc.

3,200 U.S. U.S.
CCC+ Outlook negative Telecommunications

Gogo Inc.

2,177 U.S. U.S.
CCC+ Outlook negative Telecommunications

Intelsat S.A.

16,535 Luxembourg Europe
CCC+ Outlook negative Transportation

Commercial Barge Line Co.

ACL I Corp. 1,150 U.S. U.S.
CCC+ Outlook negative Utilities

Investimentos e Participacoes em Infraestrutura S.A. - Invepar

- Brazil Latin America
CCC CreditWatch negative High technology

4L Technologies Inc.

Yes 760 U.S. U.S.
CCC Outlook negative Automotive

Horizon Global Corp.

335 U.S. U.S.
CCC Outlook negative Capital goods

Hoover Group Inc.

225 U.S. U.S.
CCC Outlook negative Capital goods MAI Holdings Inc. 135 U.S. U.S.
CCC Outlook negative Consumer products

Acosta Inc.

2,899 U.S. U.S.
CCC Outlook negative Consumer products

CSM Bakery Solutions LLC

1,060 U.S. U.S.
CCC Outlook negative Consumer products

Flavors Holdings Inc.

400 U.S. U.S.
CCC Outlook negative Consumer products

Iconix Brand Group Inc.

- U.S. U.S.
CCC Outlook negative Consumer products

Indra Holdings Corp.

245 U.S. U.S.
CCC Outlook negative Consumer products

J. Crew Group Inc.

Chinos Intermediate Holdings A Inc. 2,067 U.S. U.S.
CCC Outlook negative Consumer products

TOMS Shoes LLC

307 U.S. U.S.
CCC Outlook negative Consumer products VIP Cinema Holdings Inc. 210 U.S. U.S.
CCC Outlook negative Chemicals, packaging, and environmental services

Grupo IDESA, S.A. de C.V.

300 Mexico Latin America
CCC Outlook negative Chemicals, packaging, and environmental services

Pinnacle Operating Corp.

510 U.S. U.S.
CCC Outlook negative Forest products and building materials

Northwest Hardwoods Inc.

435 U.S. U.S.
CCC Outlook negative Health care

AAC Holdings Inc.

275 U.S. U.S.
CCC Outlook negative Health care Quorum Health Corp. 880 U.S. U.S.
CCC Outlook negative High technology Curvature Inc. 735 U.S. U.S.
CCC Outlook negative High technology

Triple Point Group Holdings Inc.

435 U.S. U.S.
CCC Outlook negative Homebuilders/real estate companies

Yida China Holdings Ltd.

300 Cayman Islands U.S.
CCC Outlook negative Insurance

One Call Corp.

One Call Care Management Inc. 3,166 U.S. U.S.
CCC Outlook negative Media and entertainment

Engine Holding LLC

- U.S. U.S.
CCC Outlook negative Media and entertainment

GK Holdings Inc.

225 U.S. U.S.
CCC Outlook negative Media and entertainment

Lago Resort & Casino

290 U.S. U.S.
CCC Outlook negative Media and entertainment Montreign Operating Co. LLC Empire Resorts Inc. 520 U.S. U.S.
CCC Outlook negative Media and entertainment

Mood Media Corp.

556 U.S. U.S.
CCC Outlook negative Metals, mining, and steel Wolverine Fuels LLC 385 U.S. U.S.
CCC Outlook negative Retail/restaurants Belk Inc. 1,500 U.S. U.S.
CCC Outlook negative Retail/restaurants Bluestem Brands Inc.

Bluestem Group Inc.

580 U.S. U.S.
CCC Outlook negative Retail/restaurants

Distribuidora Internacional de Alimentacion S.A.

1,016 Spain Europe
CCC Outlook negative Retail/restaurants Fresh Market Inc. (The) 925 U.S. U.S.
CCC Outlook negative Retail/restaurants

Neiman Marcus Group LTD LLC

8,809 U.S. U.S.
CCC Outlook negative Retail/restaurants

SAL Acquisition Corp.

2,220 U.S. U.S.
CCC Outlook negative Telecommunications

Frontier Communications Corp.

20,353 U.S. U.S.
CCC Outlook negative Telecommunications

Global Eagle Entertainment Inc.

500 U.S. U.S.
CCC Outlook negative Telecommunications

iQor Holdings Inc.

820 U.S. U.S.
CCC Outlook negative Utilities

Ferrellgas Partners L.P.

3,464 U.S. U.S.
CCC- Outlook negative Capital goods

Doncasters Group Ltd.

1,110 U.K. Europe
CCC- Outlook negative Capital goods

Sprint Industrial Holdings LLC

241 U.S. U.S.
CCC- Outlook negative Consumer products CDR HRB Holdings Inc. 250 U.S. U.S.
CCC- Outlook negative Consumer products

PFS Holding Corp.

390 U.S. U.S.
CCC- Outlook negative Consumer products

PT Delta Merlin Dunia Textile

Yes 300 Indonesia Asia/Pacific
CCC- Outlook negative Chemicals, packaging, and environmental services Verdesian Life Sciences LLC 217 U.S. U.S.
CCC- Outlook negative High technology Evergreen Skills Lux S.a.r.l. Evergreen Skills Intermediate Lux S.ar.l. 2,035 Luxembourg Europe
CCC- Outlook negative Oil and gas Alta Mesa Resources Inc. 1,000 U.S. U.S.
CCC- Outlook negative Oil and gas

EP Energy LLC

11,300 U.S. U.S.
CCC- Outlook negative Oil and gas

Perpetual Energy Inc.

14 Canada Canada
CCC- Outlook negative Retail/restaurants

Pier 1 Imports Inc.

200 U.S. U.S.
CCC- Outlook negative Retail/restaurants

Steak n Shake Inc.

Biglari Holdings Inc.

220 U.S. U.S.
CCC- Outlook negative Telecommunications

Premiere Global Services Inc.

1,330 U.S. U.S.
CCC- Outlook negative Telecommunications

Uniti Group Inc.

6,780 U.S. U.S.
CCC- Outlook negative Transportation

Moby SpA

628 Italy Europe
CCC- Outlook negative Utilities

Metrogas S.A.

- Argentina Latin America
CC CreditWatch negative Consumer products

syncreon Group Holdings B.V.

- Netherlands Europe
CC CreditWatch negative Telecommunications

IPC Corp.

Yes 1,455 U.S. U.S.
CC CreditWatch negative Telecommunications Maxcom Telecomunicaciones, S.A.B. de C.V. 180 Mexico Latin America
CC Outlook negative Health care New Millennium Holdco Inc. 1,200 U.S. U.S.
CC Outlook negative Media and entertainment

Thomas Cook Group PLC

1,291 U.K. Europe
CC Outlook negative Oil and gas

Halcon Resources Corp.

625 U.S. U.S.
CC Outlook negative Oil and gas

Sanchez Energy Corp.

1,000 U.S. U.S.
CC Outlook negative Retail/restaurants

99 cents only stores LLC

684 U.S. U.S.
CC Outlook negative Transportation

Flexi-Van Leasing Inc.

300 U.S. U.S.
Data as of July 22, 2019. Source: S&P Global Ratings Research.

Related Research

This report does not constitute a rating action.

Credit Markets Research:Sudeep K Kesh, New York (1) 212-438-7982;
sudeep.kesh@spglobal.com
Nicole Serino, New York + 1 (212) 438 1396;
nicole.serino@spglobal.com
Research Contributors:Nivritti Mishra Richhariya, CRISIL Global Analytical Center, an S&P Global Ratings affiliate, Mumbai
Lyndon Fernandes, CRISIL Global Analytical Center, an S&P affiliate, Mumbai

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