The 2021 corporate default tally increased to 52 after four issuers defaulted this week. The defaulters are:
- Virginia-based travel documentation provider KCIBT Holdings L.P.
- Spain-based audio-video services provider Joye Media SLU
- Missouri-based coal producer Peabody Energy Corp. (This issuer also defaulted on Feb. 3 and June 3, 2021.)
- China-based real estate developer Sichuan Languang Development Co. Ltd.
Despite the uptick in defaults this week, the number of monthly defaults has been decreasing since April--driven by a decrease in distressed exchanges, which have dominated defaults since third-quarter 2020. Only one-third of defaults in June were due to a distressed exchange, compared to over 80% in January of this year (see chart 1). Global financing conditions remain accommodative at every rating level, even for 'CCC and below' issuers, where spreads are tight despite inflationary pressures (see chart 2). Additionally, a combination of vaccines and better management of the economic effects of the virus has led to stronger-than-expected economic growth so far in 2021, giving some reprieve to key pandemic-affected sectors (see "Global Economic Outlook Q3 2021: Picking Up Steam, Fueled By Vaccinations", June 30, 2021).
This Week's Observations
- The year-to-date 2021 global default total, at 52, remains much lower than the year-to-date tally of 136 in 2020.
- Much of the decrease in defaults can be attributed to a drop in the number of issuers defaulting due to a distressed exchange (see chart 1).
- The oil and gas, media and entertainment, and consumer products sectors are leading U.S. defaults this year, with four defaults each (see chart 2).
Chart 1
Chart 2
Chart 3
Chart 4
Chart 5
Chart 6
Table 1
The U.S. Leads 2021 Defaults With 29 Out Of 48 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Region | 12-month-trailing speculative-grade default rate (%) | 2021§ | 2020§ | 2020 | Weakest links | |||||||
U.S. | 3.8* | 29 | 89 | 146 | 213 | |||||||
Emerging market | 2.4 | 9 | 21 | 28 | 27 | |||||||
Europe | 4.7* | 12 | 17 | 42 | 66 | |||||||
Other developed | 3.6 | 2 | 9 | 10 | 18 | |||||||
Global | 4.3 | 52 | 136 | 226 | 324 | |||||||
*Trailing-12-month default rates from June 30, 2020-June 30, 2021 are preliminary and subject to change. §Year-to-date data as of July 14. Weakest link data is as of May 31, 2021. 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®. |
Table 2
The 2021 Global Corporate Default Tally Is 52 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Date | Parent company | Country | Subsector | To | From | Reason | ||||||||
1/5/2021 |
HGIM Corp. |
U.S. | Oil and gas | SD | CC | Distressed exchange | ||||||||
1/6/2021 |
Promotora de Informaciones S.A. |
Spain | Media and entertainment | SD | CC | Distressed exchange | ||||||||
1/8/2021 |
Burger BossCo Intermediate Inc., |
U.S. | Retail/restaurants | SD | CCC | Distressed exchange | ||||||||
1/8/2021 |
Riverbed Parent Inc., |
U.S. | High technology | SD | CC | Distressed exchange | ||||||||
1/21/2021 |
AMC Entertainment Holdings Inc. |
U.S. | Media and entertainment | SD | CC | Distressed exchange | ||||||||
1/25/2021 |
Awesome Acquisition Co. L.P. |
U.S. | Retail/restaurants | D | NR | Chapter 11 | ||||||||
1/25/2021 |
Alpha Media LLC |
U.S. | Media and entertainment | D | NR | Bankruptcy | ||||||||
1/27/2021 |
Imagine Group LLC (The) |
U.S. | Media and entertainment | D | CCC | Distressed exchange | ||||||||
2/2/2021 |
Belk Inc., |
U.S. | Retail/restaurants | D | CC | Missed interest payments | ||||||||
2/3/2021 |
Peabody Energy Corp. (A) |
U.S. | Metals, mining, and steel | SD | CC | Distressed exchange | ||||||||
2/3/2021 | Confidential | Confidential | Health care | SD | CCC- | Confidential | ||||||||
2/11/2021 |
Confidential |
Confidential | Automotive | D | CCC- | Confidential | ||||||||
2/11/2021 |
Vallourec |
France | Oil and gas | SD | CC | Missed principal payments | ||||||||
2/19/2021 |
Renfro Corp. |
U.S. | Consumer products | SD | CCC- | Distressed exchange | ||||||||
2/22/2021 |
CatLuxe Sarl (CatLuxe Acquistion Sarl) |
Luxembourg | Consumer products | SD | CCC+ | Distressed exchange | ||||||||
2/22/2021 |
Form Technologies LLC |
U.S. | Capital goods | SD | CC | Distressed exchange | ||||||||
2/26/2021 |
YPF S.A. |
Argentina | Oil and gas | SD | CC | Distressed exchange | ||||||||
3/2/2021 |
Sunshine 100 China Holdings Ltd. |
Cayman Islands | Homebuilders/real estate companies | SD | CCC- | Distressed exchange | ||||||||
3/7/2021 | Confidential | Confidential | Financial institutions | D | NR | Confidential | ||||||||
3/8/2021 | Confidential | Confidential | Financial institutions | D | B+ | Confidential | ||||||||
3/16/2021 |
Ensign Drilling Inc. (Ensign Energy Services Inc.) |
Canada | Oil and gas | SD | CCC+ | Distressed exchange | ||||||||
3/16/2021 |
HighPoint Resources Corp. |
U.S. | Oil and gas | D | CC | Chapter 11 | ||||||||
3/17/2021 |
Washington Prime Group Inc. |
U.S. | Homebuilders/real estate companies | D | CC | Missed interest payments | ||||||||
3/18/2021 | Confidential | Confidential | Consumer products | D | CCC | Confidential | ||||||||
3/23/2021 |
AI Mistral Holdco Ltd. |
U.K. | Transportation | SD | CCC+ | Distressed exchange | ||||||||
3/26/2021 |
Avation PLC |
U.K. | Transportation | SD | CC | Distressed exchange | ||||||||
4/13/2021 |
YPF Energia Electrica S.A. (YPF S.A) |
Argentina | Utilities | SD | CCC- | Distressed exchange | ||||||||
4/14/2021 |
ION Geophysical Corp. |
U.S. | Oil and gas | SD | CC | Distressed exchange | ||||||||
4/15/2021 |
Summit Midstream Partners, LP |
U.S. | Midstream | SD | CC | Distressed exchange | ||||||||
4/16/2021 |
Basic Energy Services Inc. |
U.S. | Oil and gas | D | CCC- | Missed interest payments | ||||||||
4/19/2021 |
Medical Depot Holdings Inc. |
U.S. | Health care | SD | CCC+ | Distressed exchange | ||||||||
4/19/2021 |
Serta Simmons Bedding LLC |
U.S. | Consumer products | SD | CC | Distressed exchange | ||||||||
4/23/2021 |
Isagenix Worldwide, Inc |
U.S. | Consumer products | SD | CCC | Distressed exchange | ||||||||
4/26/2021 | Confidential | Confidential | High technology | SD | CCC+ | Confidential | ||||||||
4/27/2021 |
Maxcom Telecomunicaciones S.A.B. de C.V. |
Mexico | Telecommunications | D | CCC- | Missed interest payments | ||||||||
4/28/2021 |
Future Retail Ltd. |
India | Retail/restaurants | SD | CCC- | Distressed exchange | ||||||||
4/28/2021 | Confidential | Confidential | Consumer products | SD | CCC- | Confidential | ||||||||
4/30/2021 |
Codere S.A. |
Spain | Media and entertainment | SD | CC | Distressed exchange | ||||||||
5/3/2021 | Confidential | Confidential | Transportation | D | CC | Confidential | ||||||||
5/10/2021 |
gategroup Holding AG |
Switzerland | Transportation | SD | CCC | Distressed exchange | ||||||||
5/10/2021 |
Voyager Aviation Holdings LLC |
U.S. | Transportation | SD | CC | Distressed exchange | ||||||||
5/14/2021 |
CDRH Parent Inc., |
U.S. | Health care | D | CC | Distressed exchange | ||||||||
5/19/2021 |
Boart Longyear Ltd. |
Australia | Metals, mining, and steel | D | CC | Bankruptcy | ||||||||
5/25/2021 | Confidential | Confidential | Homebuilders/real estate companies | D | CCC- | Confidential | ||||||||
6/3/2021 | Peabody Energy Corp. (B) | U.S. | Metals, mining, and steel | SD | CCC+ | Distressed exchange | ||||||||
6/23/2021 |
Carlson Travel Inc |
U.S. | Media and entertainment | D | CCC | Missed interest payments | ||||||||
6/23/2021 | Confidential | Confidential | Consumer products | D | CCC- | Confidential | ||||||||
7/1/2021 |
GTT Communications Inc., |
U.S. | Telecommunications | SD | CCC- | Missed interest payments | ||||||||
7/8/2021 |
KCIBT Holdings LP |
U.S. | Consumer products | SD | CCC | Distressed exchange | ||||||||
7/9/2021 |
Joye Media SLU |
Spain | Media and entertainment | D | CCC- | Missed interest payments | ||||||||
7/12/2021 | Peabody Energy Corp. (C) | U.S. | Metals, mining, and steel | SD | CCC | Distressed exchange | ||||||||
7/13/2021 |
Sichuan Languang Development Co. Ltd. |
China | Homebuilders/real estate companies | D | CCC- | Missed bond repayment | ||||||||
NR--Not rated. SD--Selective default. Data as of July 14, 2021. (B) designation indicates the issuer's second default for 2021. (C) designation indicated the issuer's third default for 2021.*Sunshine 100 China Holdings Ltd. is incorporated in the Cayman Islands but invests, develops, and manages real estate properties in the People’s Republic of China. Companies incorporated in the Cayman Islands are included in the U.S. default rate computation due to the location as a U.S. tax haven. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®. |
Related Research
- Sichuan Languang Downgraded To 'D' On Missed Bond Repayment, July 13, 2021
- Peabody Energy Corp. Downgraded To 'SD' From 'CCC' On Distressed Debt Repurchases, Tender Offer, July 12, 2021
- Joye Media Downgraded To 'D' From 'CCC-' On Missed Interest Payment, July 9, 2021
- KCIBT Holdings L.P. Downgraded To 'SD' From 'CCC' On Distressed First- And Second-Lien Term Loan Amendments, July 8, 2021
- Credit Conditions North America Q3 2021: Looking Ahead, It’s Looking Up, June 29, 2021
- COVID-19 Heat Map: Pent-Up Demand And Supply Shortages Further Improve Recovery Prospects For Credit Quality, June 8, 2021
Default Studies
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2020 Annual European Corporate Default And Rating Transition Study
- 2020 Annual Asia Corporate Default And Rating Transition Study
- 2020 Annual Taiwan Ratings Corp. Corporate Default And Rating Transition Study
- 2020 Annual U.S. Corporate Default And Rating Transition Study
- 2020 Annual Global Corporate Default And Rating Transition Study
- 2020 Annual Japanese Issuer Credit Rating Transition Study
- 2019 Annual Mexican National Scale Corporate And Public Finance Default And Rating Transition Study
- 2019 Annual Greater China Corporate Default And Rating Transition Study
- 2019 Annual Emerging Markets Corporate Default And Rating Transition Study
- 2019 Annual Latin American Corporate Default And Rating Transition Study
- 2019 Annual Global Financial Services Default And Rating Transition Study
- 2019 Annual U.S. Corporate Default And Rating Transition Study
- 2018 Annual Infrastructure Default And Rating Transition Study
- 2017 Annual Australia And New Zealand 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
- 2020 Annual Taiwan Structured Finance Default And Rating Transition Study
- 2020 Annual Global Structured Finance Default And Rating Transition Study
- 2020 Annual Japanese Structured Finance Default And Rating Transition Study
- 2019 Annual Mexican Structured Finance Default And Rating Transition Study
- 2019 Annual European Structured Finance Default And Rating Transition Study
- 2019 Annual Global Leveraged Loan CLO Default And Rating Transition Study
U.S. public finance
- 2020 Annual U.S. Public Finance Default And Rating Transition Study
- 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
- 2020 Annual Sovereign Default And Rating Transition Study
- 2019 Annual International Public Finance Default And Rating Transition Study
This report does not constitute a rating action.
Credit Markets Research: | Nicole Serino, New York + 1 (212) 438 1396; nicole.serino@spglobal.com |
Secondary Contact: | David C Tesher, New York + 212-438-2618; david.tesher@spglobal.com |
Research Contributor: | Shripati Pranshu, CRISIL Global Analytical Center, an S&P affiliate, Mumbai |
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