The 2021 global corporate default tally remained at 59 this week after Toronto-based marketing services provider, Array Canada Inc., defaulted this week and one confidential issuer was removed from the tally due a monthly reconciliation process. Array Canada is the first default globally in September and the 12th in the quarter. With only one week to go, the third quarter default tally has remained at its lowest level since 2014 (see chart 1).
With only four defaults globally in August, the U.S. and Europe 12-month trailing speculative-grade default rate dropped in August to 2.85% and 4.02%, respectively (see chart 2). S&P Global Ratings expects the U.S. speculative-grade default rate to fall to 2.5% by June 2020 and the Europe speculative-grade default rate to fall to 3.25% in this same period (see "The U.S. Speculative-Grade Corporate Default Rate Could Fall To 2.5% By June 2022," Aug. 20, 2021, and "The European Speculative-Grade Corporate Default Rate Could Fall To 3.25% By June 2022," Aug. 25, 2021).
This Week's Observations
- So far, the default tally in 2021 is lower than at this point in 2020, 2019, and 2018 with 175, 61, and 82 defaults, respectively.
- By region, the U.S. leads the default tally in 2021, with 31, followed by the European and emerging market regions, with 13 and 12 each (see chart 1).
- By sector, the consumer products sector, with nine defaults, leads the 2021 default tally, followed by the media and entertainment and oil and gas sectors, with eight and seven respectively (see chart 2).
- Defaults related to distressed exchanges led 2021 defaults so far. Further, in the third quarter of 2021, five defaults were attributed to distressed exchanges in comparison with 15 and 12 defaults in the first and second quarter (see chart 3).
Chart 1
Chart 2
Chart 3
Chart 4
Chart 5
Chart 6
Table 1
The U.S. Leads 2021 Defaults With 31 Out Of 59 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Region | 12-month-trailing speculative-grade default rate (%) | 2021 YTD | 2020 YTD | 2020 | Weakest links | |||||||
U.S. | 2.9 | 31 | 117 | 146 | 188 | |||||||
Emerging markets | 2.0 | 12 | 22 | 28 | 26 | |||||||
Europe | 4.0 | 13 | 27 | 42 | 65 | |||||||
Other developed | 2.3 | 3 | 9 | 10 | 18 | |||||||
Global | 2.9 | 59 | 175 | 226 | 297 | |||||||
Note: Trailing-12-month default rates from Aug. 31, 2020-Aug. 31, 2021. Year-to-date data as of Sept. 22. Weakest link data is as of July 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
The 2021 Global Corporate Default Tally Remains 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.* |
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.* |
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 | ||||||||
7/30/2021 |
Comdata Spa |
Italy | Financial institutions | 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 |
Sunshine 100 China Holdings Ltd.*§ |
U.S. | 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 | ||||||||
9/21/2021 |
Array Canada Inc. |
Canada | Consumer products | SD | CCC | Distressed exchange | ||||||||
*Indicates the issuer has defaulted multiple times in 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. NR--Not rated. SD--Selective default. Data as of Sept. 22, 2021. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®. |
Related Research
- Array Canada Inc. Downgraded To ‘SD’ From ‘CCC’ On Distressed Debt-For-Equity Transactions, Sept. 22, 2021
- Global Actions On Corporations, Sovereigns, International Public Finance, And Project Finance To Date In 2021, Sept. 22, 2021
- The Economic Impact Of Default Is Falling As Selective Defaults Rise, Sept. 16, 2021
- The European Speculative-Grade Corporate Default Rate Could Fall To 3.25% By June 2022, Aug. 25, 2021
- The U.S. Speculative-Grade Corporate Default Rate Could Fall To 2.5% By June 2022, Aug. 20, 2021
Default Studies
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2020 Annual Global Financial Services Default And Rating Transition Study
- 2020 Annual Latin American Corporate Default And Rating Transition Study
- 2020 Annual Greater China Corporate Default And Rating Transition Study
- 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 Emerging Markets Corporate Default And Rating Transition Study
Structured finance
- 2020 Annual European Structured Finance Default And Rating Transition Study
- 2020 Annual Global Leveraged Loan CLO Default And Rating Transition Study
- 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
U.S. public finance
Sovereign and international public finance
- 2020 Annual International Public Finance Default And Rating Transition Study
- 2020 Annual Sovereign 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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