The 2021 corporate default tally increased to 53 after one issuer from the emerging markets defaulted this week. The defaulter is Mexico-based financial services provider Alpha Holding S.A. de C.V.
Defaults have increased in July from the previous month. Half the defaults in July are from the U.S., two from the emerging markets, and one from Europe. However, the global year-to-date 2021 default tally of 53 is materially lower than the 143 defaults during the same period in 2020.
Among the defaults from emerging markets (EM) in 2021, four were confidential issuers, three were triggered by distressed exchanges, and another three because of missed payments. The number of monthly defaults for EM has decreased in recent months, bringing down the region's 12-month-trailing speculative-grade default rate to 2.3% as of May (see chart 1). Overall credit conditions in EM continue to improve, supported by sustained economic recovery in developed countries and in many cases improving domestic demand as EM economies are able to resume activities (see "Credit Conditions Emerging Markets Q3 2021: Slow Vaccination Prevents A Robust Recovery," June 29, 2021).
This Week's Observations
- The year-to-date 2021 global default total, at 53, remains much lower than the year-to-date tally of 69 and 143 in 2019 and 2020, respectively.
- By region, the U.S. leads defaults so far this year, with 29, nearly 55% of global defaults (see chart 3).
- The consumer products sector leads the global default tally this year, with eight, followed by oil and gas and media and entertainment, with seven each (see chart 2).
- Distressed debt exchanges have been the primary reason for defaults in 2021, with 29 year to date, followed by missed payments, with 10 (see chart 4). In July, four out of six defaults came from missed interest or principal payments.
Chart 1
Chart 2
Chart 3
Chart 4
Chart 5
Table 1
The U.S. Leads 2021 Defaults With 29 Out Of 53 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Region | 12-month-trailing speculative-grade default rate (%) | 2021 YTD | 2020 YTD | 2020 | Weakest links | |||||||
U.S. | 3.8* | 29 | 93 | 146 | 213 | |||||||
Emerging markets | 2.4 | 10 | 22 | 28 | 27 | |||||||
Europe | 4.7* | 12 | 19 | 42 | 66 | |||||||
Other developed | 3.6 | 2 | 9 | 10 | 18 | |||||||
Global | 4.3 | 53 | 143 | 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 21. Weakest link data is as of May 31, 2021. Other developed region is 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 53 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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.§ |
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 Acquisition 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 L.P. |
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.§ |
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.§ |
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 | ||||||||
7/20/2021 |
Alpha Holding S.A. de C.V. |
Mexico | Financial institutions | D | CC | Missed interest payments | ||||||||
*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. §Indicates issuer that defaulted multiple times. NR--Not rated. SD--Selective default. Data as of July 21, 2021. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®. |
Related Research
- COVID-19 Impact: Key Takeaways From Our Articles, July 22, 2021
- Alpha Holding And Its $300M Notes Downgraded To 'D' From 'CC' On Missed Interest Payment; Off CreditWatch Negative, July 21, 2021
- Industry Top Trends Midyear 2021: Resilience, Recovery, Risks, July 20, 2021
- After A Massive SOE Default, China Rethinks Resolutions, July 19, 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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