The 2020 global corporate default tally has reached 75, after seven issuers defaulted this week. The defaulters included New Jersey-based Hertz Global Holdings Inc., Bermuda-based Petra Diamonds Ltd., Panama-based Avianca Holdings S.A., China-based Yihua Enterprise (Group) Co. Ltd., Texas-based Fieldwood Energy LLC, and two New York-based companies Revlon Inc., and Outerstuff LLC. Additionally, we have revised our default tally due to a monthly reconciliation process to include restaurant operator Pace Industries Inc. and one confidential issuer.

Since the onset of COVID-19, defaults across all regions have increased as the impact from social distancing measures to contain the spread of the disease are weighing on global economies. The 2020 year-to-date default tally as of May 13 has now surpassed 2016 levels, where we last experienced an influx of oil and gas defaults due to sustained drops in oil prices, and is the highest since the great financial crisis. S&P Global expects global GDP to fall 2.4% this year, with the U.S. and eurozone contracting 5.2% and 7.3%, respectively (see "COVID-19 Deals A Larger, Longer Hit To Global GDP, April 16, 2020). By region, the U.S. leads the default tally with nearly 70% of global defaults (see chart 1).

Chart 1

This Week's Observations

• At this point in 2019 and 2018, there had been 47 and 37 defaults, respectively.
• Defaults in 2020 so far from the U.S., at 51, surpasses the year-end total defaults from the region in 2018, 2014, and 2013, at 47, 32, and 44, respectively.
• Missed interest and principal payments are leading cause of defaults in 2020 so far, with 33.
• By sector, consumer products leads the global default tally, with 12, followed by media and entertainment, with 10.

Chart 2

Chart 3

Chart 4

Table 1

Table 2

Related Research

• Revlon Inc. Rating Lowered To 'SD' On Completion Of 2016 Term Loan Refinancing Transaction, May 13, 2020
• Outerstuff LLC Rating Lowered To 'SD' On Missed Payment And Forbearance Agreement; Term Loan Rating Lowered To 'D', May 13, 2020
• U.S. And China Kick Trade Deal Can Down The Road, May 13, 2020
• Potential Fallen Angels: U.S. Oil And Gas Companies Walk A Thin Line Between Investment Grade And Speculative Grade, May 13, 2020
• Fieldwood Energy LLC Downgraded To 'D' On Missed Interest Payment; Debt Ratings Also Lowered, May 12, 2020Avianca Holdings S.A. Ratings Cut To 'D' On Chapter 11 Bankruptcy Filing, May 12, 2020
• Yihua Enterprise Rating Lowered To 'SD' On Missed Interest Payment; Issue Rating Lowered To 'CC'; Ratings Then Withdrawn, May 11, 2020
• Petra Diamonds Downgraded To 'D' On Missed Interest Payment, May 8, 2020
• Hertz Global Holdings Downgraded To 'SD' On Delayed Lease Payments To Asset-Backed Vehicle Debt, Issue Ratings Affirmed, May 7, 2020

Default Studies

More analysis and statistics are available in our annual default studies, published on RatingsDirect:

Corporate (financial and nonfinancial)

• 2019 Annual Global Corporate Default And Rating Transition Study
• 2018 Annual Infrastructure Default And Rating Transition Study
• 2018 Annual Mexican National Scale Corporate And Public Finance Default And Rating Transition Study
• 2018 Annual Latin American Corporate Default And Rating Transition Study
• 2018 Annual Global Financial Services Default And Rating Transition Study
• 2018 Annual Greater China Corporate Default And Rating Transition Study
• 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 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

Structured finance

• 2019 Annual Japanese Structured Finance Default And Rating Transition Study
• 2018 Annual Mexican Structured Finance Default And Rating Transition Study
• 2018 Annual European Structured Finance Default And Rating Transition Study
• 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

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 International Public Finance Default And Rating Transition Study
• 2018 Annual Sovereign Default And Rating Transition Study