The 2021 global corporate default tally increased to 63 this week following the default of China-based (Cayman Islands-incorporated) real estate developer Sinic Holdings (Group) Co. Ltd. after the issuer failed to repay the interest and principal on its US$250 million offshore senior unsecured notes due on Oct. 18, 2021 (see "Sinic Holdings Downgraded To 'SD' On Missed Bond Payment," Oct. 19, 2021).
So far in 2021, seven homebuilders and real estate companies have defaulted, four of which are based in China and incorporated in the Cayman Islands (see chart 1). Two of these defaults (Sinic Holdings and Fantasia Holdings Group Co. Ltd.) were recorded in October. The sector recently has been rattled by contagion risks related to Evergrande as developers with concentrated maturities and deteriorating liquidity have been left exposed (see "Credit FAQ: Evergrande Default Contagion Risk--Ripple Or Wave?," Sept. 20, 2021.)
Chart 1
Globally, defaults in 2021 remain low--the current tally is the third-lowest year-to-date default count, following the 49 defaults and 32 defaults in 2014 and 2011, respectively. With no new defaults in the U.S. and Europe in September, the 12-month-trailing speculative-grade default rate fell to 2.4% for the U.S. and 3.4% for Europe.
This Week's Observations
- So far, two-thirds of this month's defaults have been from the homebuilders and real estate sector as there has been a pickup in defaults from China-based issuers in the sector.
- The U.S. leads the 2021 default tally with 34, followed by Europe and the emerging markets with 13 defaults each (see chart 3).
- So far in 2021, around 52% of the defaults were related to distressed exchanges while missed payments accounted for 22% (see chart 5).
Chart 2
Chart 3
Chart 4
Chart 5
Chart 6
Table 1
The U.S. Leads 2021 Defaults With 34 Out Of 63 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Region | 12-month-trailing speculative-grade default rate (%) | 2021 YTD | 2020 YTD | 2020 | Weakest links | |||||||
U.S. | 2.4 | 34 | 129 | 146 | 165 | |||||||
Emerging market | 2.2 | 13 | 26 | 28 | 22 | |||||||
Europe | 3.4 | 13 | 32 | 42 | 58 | |||||||
Other developed | 3.0 | 3 | 9 | 10 | 15 | |||||||
Global | 2.6 | 63 | 196 | 226 | 260 | |||||||
Note: Trailing-12-month default rates are from Sept. 30, 2020-Sept. 30, 2021. Year-to-date data as of Oct. 20. Weakest link data is as of Aug. 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 Inches To 63 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Date | Parent company | Country | Subsector | To | From | Reason | ||||||||
1/5/21 |
HGIM Corp. |
U.S. | Oil and gas | SD | CC | Distressed exchange | ||||||||
1/6/21 |
Promotora de Informaciones S.A. |
Spain | Media and entertainment | SD | CC | Distressed exchange | ||||||||
1/8/21 |
Burger BossCo Intermediate Inc. |
U.S. | Retail/restaurants | SD | CCC | Distressed exchange | ||||||||
1/8/21 |
Riverbed Parent Inc. |
U.S. | High technology | SD | CC | Distressed exchange | ||||||||
1/21/21 |
AMC Entertainment Holdings Inc. |
U.S. | Media and entertainment | SD | CC | Distressed exchange | ||||||||
1/25/21 |
Awesome Acquisition Co. L.P. |
U.S. | Retail/restaurants | D | NR | Chapter 11 | ||||||||
1/25/21 |
Alpha Media LLC |
U.S. | Media and entertainment | D | NR | Bankruptcy | ||||||||
1/27/21 |
Imagine Group LLC (The) |
U.S. | Media and entertainment | D | CCC | Distressed exchange | ||||||||
2/2/21 |
Belk Inc. |
U.S. | Retail/restaurants | D | CC | Missed interest payments | ||||||||
2/3/21 |
Peabody Energy Corp.* |
U.S. | Metals, mining, and steel | SD | CC | Distressed exchange | ||||||||
2/3/21 | Confidential | Confidential | Health care | SD | CCC- | Confidential | ||||||||
2/11/21 | Confidential | Confidential | Automotive | D | CCC- | Confidential | ||||||||
2/11/21 |
Vallourec |
France | Oil and gas | SD | CC | Missed principal payments | ||||||||
2/19/21 |
Renfro Corp. |
U.S. | Consumer products | SD | CCC- | Distressed exchange | ||||||||
2/22/21 |
CatLuxe Sarl (CatLuxe Acquisition Sarl) |
Luxembourg | Consumer products | SD | CCC+ | Distressed exchange | ||||||||
2/22/21 |
Form Technologies LLC |
U.S. | Capital goods | SD | CC | Distressed exchange | ||||||||
2/26/21 |
YPF S.A. |
Argentina | Oil and gas | SD | CC | Distressed exchange | ||||||||
3/2/21 |
Sunshine 100 China Holdings Ltd.* |
Cayman Islands | Homebuilders/real estate companies | SD | CCC- | Distressed exchange | ||||||||
3/7/21 | Confidential | Confidential | Financial institutions | D | NR | Confidential | ||||||||
3/8/21 | Confidential | Confidential | Financial institutions | D | B+ | Confidential | ||||||||
3/16/21 |
Ensign Drilling Inc. (Ensign Energy Services Inc.) |
Canada | Oil and gas | SD | CCC+ | Distressed exchange | ||||||||
3/16/21 |
HighPoint Resources Corp. |
U.S. | Oil and gas | D | CC | Chapter 11 | ||||||||
3/17/21 |
Washington Prime Group Inc. |
U.S. | Homebuilders/real estate companies | D | CC | Missed interest payments | ||||||||
3/18/21 | Confidential | Confidential | Consumer products | D | CCC | Confidential | ||||||||
3/23/21 |
AI Mistral Holdco Ltd. |
U.K. | Transportation | SD | CCC+ | Distressed exchange | ||||||||
3/26/21 |
Avation PLC |
U.K. | Transportation | SD | CC | Distressed exchange | ||||||||
4/13/21 |
YPF Energia Electrica S.A. (YPF S.A) |
Argentina | Utilities | SD | CCC- | Distressed exchange | ||||||||
4/14/21 |
ION Geophysical Corp. |
U.S. | Oil and gas | SD | CC | Distressed exchange | ||||||||
4/15/21 |
Summit Midstream Partners L.P. |
U.S. | Midstream | SD | CC | Distressed exchange | ||||||||
4/16/21 |
Basic Energy Services Inc. |
U.S. | Oil and gas | D | CCC- | Missed interest payments | ||||||||
4/19/21 |
Medical Depot Holdings Inc. |
U.S. | Health care | SD | CCC+ | Distressed exchange | ||||||||
4/19/21 |
Serta Simmons Bedding LLC |
U.S. | Consumer products | SD | CC | Distressed exchange | ||||||||
4/23/21 |
Isagenix Worldwide, Inc |
U.S. | Consumer products | SD | CCC | Distressed exchange | ||||||||
4/26/21 | Confidential | Confidential | High technology | SD | CCC+ | Confidential | ||||||||
4/27/21 |
Maxcom Telecomunicaciones, S.A.B. de C.V. |
Mexico | Telecommunications | D | CCC- | Missed interest payments | ||||||||
4/28/21 |
Future Retail Ltd. |
India | Retail/restaurants | SD | CCC- | Distressed exchange | ||||||||
4/28/21 | Confidential | Confidential | Consumer products | SD | CCC- | Confidential | ||||||||
4/30/21 |
Codere S.A. |
Spain | Media and entertainment | SD | CC | Distressed exchange | ||||||||
5/3/21 | Confidential | Confidential | Transportation | D | CC | Confidential | ||||||||
5/10/21 |
gategroup Holding AG |
Switzerland | Transportation | SD | CCC | Distressed exchange | ||||||||
5/10/21 |
Voyager Aviation Holdings LLC |
U.S. | Transportation | SD | CC | Distressed exchange | ||||||||
5/14/21 |
CDRH Parent Inc. |
U.S. | Health care | D | CC | Distressed exchange | ||||||||
5/19/21 |
Boart Longyear Ltd. |
Australia | Metals, mining, and steel | D | CC | Bankruptcy | ||||||||
5/25/21 | Confidential | Confidential | Homebuilders/real estate companies | D | CCC- | Confidential | ||||||||
6/3/21 |
Peabody Energy Corp.* |
U.S. | Metals, mining, and steel | SD | CCC+ | Distressed exchange | ||||||||
6/23/21 |
Carlson Travel Inc. |
U.S. | Media and entertainment | D | CCC | Missed interest payments | ||||||||
6/23/21 | Confidential | Confidential | Consumer products | D | CCC- | Confidential | ||||||||
7/1/21 |
GTT Communications Inc. |
U.S. | Telecommunications | SD | CCC- | Missed interest payments | ||||||||
7/8/21 |
KCIBT Holdings L.P. |
U.S. | Consumer products | SD | CCC | Distressed exchange | ||||||||
7/9/21 |
Joye Media SLU |
Spain | Media and entertainment | D | CCC- | Missed interest payments | ||||||||
7/12/21 |
Peabody Energy Corp.* |
U.S. | Metals, mining, and steel | SD | CCC | Distressed exchange | ||||||||
7/13/21 |
Sichuan Languang Development Co. Ltd. |
China | Homebuilders/real estate companies | D | CCC- | Missed bond repayment | ||||||||
7/20/21 |
Alpha Holding S.A. de C.V. |
Mexico | Financial institutions | D | CC | Missed interest payments | ||||||||
7/30/21 |
Comdata Spa |
Italy | Financial institutions | SD | CC | Distressed exchange | ||||||||
8/3/21 | Confidential | Confidential | Transportation | SD | CC | Confidential | ||||||||
8/9/21 |
Glass Mountain Pipeline, LLC |
U.S. | Utilities | D | CC | Missed interest payments | ||||||||
8/11/21 |
Sunshine 100 China Holdings Ltd.* |
Cayman Islands | Homebuilders/real estate companies | SD | CCC- | Missed bond repayment | ||||||||
8/13/21 |
CLISA-Compania Latinoamericana de Infraestructura & Servicios S.A. |
Argentina | Capital goods | SD | CC | Distressed exchange | ||||||||
9/21/21 |
Array Canada Inc. |
Canada | Consumer products | SD | CCC | Distressed exchange | ||||||||
9/29/21 | Confidential | Confidential | Financial institutions | D | B- | Confidential | ||||||||
10/4/21 |
IPC Corp. |
United States | Telecommunications | SD | CCC- | Distressed exchange | ||||||||
10/5/21 |
Fantasia Holdings Group Co. Ltd. |
Cayman Islands | Homebuilders/real estate companies | SD | CCC | Missed bond repayment | ||||||||
10/19/21 |
Sinic Holdings (Group) Co. Ltd. |
Cayman Islands | Homebuilders/real estate companies | SD | CC | Missed bond repayment | ||||||||
Note: Sunshine 100 China Holdings Ltd., Fantasia Holdings Group Co. Ltd., and Sinic Holdings (Group) Co. Ltd. are incorporated in the Cayman Islands but invest, develop, and manage 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 the issuer defaulted multiple times in 2021. Data as of Oct. 20, 2021. NR--Not rated. SD--Selective default. *Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®. |
Related Research
- Ratings Weekly Digest, Oct. 20, 2021
- Sinic Holdings Downgraded To 'SD' On Missed Bond Payment, Oct. 19, 2021
- Global Corporate Default Tally For 2021 Reaches 62, Oct. 8, 2021
- Credit FAQ: Evergrande Default Contagion Risk--Ripple Or Wave?, Sept. 20, 2021
- Evergrande And Subsidiaries Downgraded To 'CC' On Depleted Liquidity; Outlook Negative, Sept. 15, 2021
Default Studies
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2020 Annual Australia And New Zealand Corporate Default And Rating Transition Study
- 2020 Annual Infrastructure Default And Rating Transition Study
- 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: | Tanya Dias, CRISIL Global Analytical Center, an S&P affiliate, Mumbai |
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