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Default, Transition, and Recovery: The 2021 Global Corporate Default Tally Remains At 59

The 2021 global corporate default tally remains at 59 after no issuers defaulted since our last report.

There were only 12 defaults in third-quarter 2021 so far--considerably lower than the first two quarters of 2021 with 21 and 26, respectively (see chart 1). Several factors have contributed to the slow in defaults, but the main drivers include a stronger-than-expected U.S. economic recovery fueled by the success in the COVID-19 vaccine, as well as stabilizing credit quality propelled by exceptionally favorable financing conditions. With only two U.S. defaults last month, we estimate the U.S. 12-month trailing speculative-grade default rate fell to 2.8% in August from 3.1% in July and the European 12-month trailing speculative-grade default rate fell to 4.0% in August from 4.3% in July (see table 1).

There has also been a shift in the type of defaults we are seeing; one-half of third-quarter 2021 defaults have been related to missed interest and principal payments compared with the previous four quarters which have been predominately distressed exchanges (see chart 2). Although the number of distressed exchanges still dominates the 2021 tally with 53% of defaults so far.

Chart 1

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This Week's Observations

  • Globally, at this point in 2020, there were 169 defaults in the year, while in 2018 and 2019, there were 59 and 76 defaults, respectively.
  • By sector, consumer products (8), media and entertainment (8), and oil and gas (7) led year-to-date defaults in 2021. Whereas in 2020 year-to-date there were 30, 25, and 34 defaults from these sectors, respectively (see chart 3).
  • Distressed exchanges related defaults led 2021 defaults so-far, with 31 out of 59.

Chart 2

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Chart 3

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Chart 4

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Chart 5

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Table 1

The Estimated U.S. Default Rate Fell To 2.8% In August
Global corporate default summary
Region 12-month trailing speculative-grade default rate (%) 2021 YTD default tally 2020 YTD default tally 2020 default tally Weakest links tally
U.S. 2.8* 31 112 146 188
Emerging markets 1.7 13 22 28 26
Europe 4.0* 13 23 42 65
Other developed 2.3 2 9 10 18
Global 3.0 59 166 226 297
Note: *Trailing-12-month speculative grade default rates from July 31, 2020 – July 31, 2021, preliminary and subject to change. Year-to-date data as of Sept. 8, 2021. Weakest link data is as of June 30, 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

2021 Global Corporate Default Tally At 59
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 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. (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 L.P.

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
7/20/2021

Alpha Holding S.A. de C.V.

Mexico Financial institutions D CC Missed interest payments
7/30/2021

Comdata Spa

Italy Media and entertainment SD CC Distressed exchange
8/3/2021 Confidential Confidential Transportation SD CC Confidential
8/9/2021

Glass Mountain Pipeline LLC

U.S. Utilities D CC Missed interest payments
8/11/2021 Confidential Confidential Financial institutions SD CCC+ Confidential
8/11/2021

Sunshine 100 China Holdings Ltd. (B)

Cayman Islands Homebuilders/real estate companies SD CCC- Missed bond repayment
8/13/2021

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

Argentina Capital goods SD CC Distressed exchange
*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. NR--Not rated. SD--Selective default. Data as of Sept. 8, 2021. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®.

Related Research

Default Studies

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

Corporate (financial and nonfinancial)
Structured finance
U.S. public finance
Sovereign and international public finance

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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