The 2021 global corporate default tally has increased to 69 following the defaults of China-based (Cayman Islands-incorporated) China Aoyuan Group Ltd. and one confidential issuer. So far in the fourth quarter there have been nine defaults, four based in China as Chinese real estate developers continue to face funding challenges (see "Asia-Pacific Credit Outlook 2022 China Decelerates, Fed Deliberates," Dec. 6, 2021).
Nonetheless, global corporate quarterly defaults continue to show a downward trajectory, with the 12-month-trailing speculative-grade default rate for the U.S. declining to 2.0% in October 2021 from 6.6% in January 2021, while the European default rate fell to 2.5% from 5.1% during the same period. After no European defaults and only two U.S. defaults in the last month, we expect the 12-month-trailing speculative-grade default rates to decline in November to 1.7% and 2.1% for the U.S. and Europe, respectively.
Chart 1
This Week's Observations
- With only nine defaults, the fourth-quarter 2021 tally is tied with the lowest fourth-quarter default count since 2008 (see chart 1).
- The U.S. leads the 2021 default tally with 39, followed by emerging markets with 14 defaults (see table 1).
- Defaults related to distressed exchanges accounted for 59% in 2021 while in 2020 they accounted for 33% (see chart 4).
Chart 2
Chart 3
Chart 4
Chart 5
Table 1
The U.S. Leads 2021 Defaults With 39 Out Of 69 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Region | 12-month-trailing speculative-grade default rate (%) | 2021 YTD | 2020 YTD | 2020 | Weakest links | |||||||
U.S. | *1.7 | 39 | 142 | 146 | 155 | |||||||
Emerging markets | 1.7 | 14 | 28 | 28 | 20 | |||||||
Europe | *2.1 | 13 | 42 | 42 | 54 | |||||||
Other developed | 3.0 | 3 | 10 | 10 | 13 | |||||||
Global | 2.1 | 69 | 222 | 226 | 242 | |||||||
*Trailing-12-month speculative-grade default rates from Nov. 30, 2020–Nov. 30, 2021, are preliminary and subject to change. Year-to-date data as of Dec. 8. Weakest link data is as of Sept. 30, 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 Increased To 69 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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 Acquistion 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, LP |
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 Marketing Canada Inc. |
Canada | Consumer products | SD | CCC | Distressed exchange | ||||||||
9/29/21 | Confidential | Confidential | Financial institutions | D | B- | Confidential | ||||||||
10/4/21 |
IPC Corp. |
U.S. | Telecommunications | SD | CCC- | Distressed exchange | ||||||||
10/5/21 |
Fantasia Holdings Group Co. Ltd.§ |
Cayman Islands | Homebuilders/real estate companies | SD | CCC | Missed bond repayment | ||||||||
10/15/21 | Confidential | Confidential | Homebuilders/real estate companies | SD | CC | Confidential | ||||||||
10/19/21 |
Sinic Holdings (Group) Co. Ltd.§ |
Cayman Islands | Homebuilders/real estate companies | SD | CC | Missed bond repayment | ||||||||
11/2/21 |
Exela Technologies Inc. |
U.S. | Media and entertainment | SD | CCC- | Distressed exchange | ||||||||
11/11/21 |
Investimentos e Participacoes em Infraestrutura S.A. - Invepar |
Brazil | Utility | D | CC | Distressed exchange | ||||||||
11/17/21 |
Riverbed Parent Inc. |
U.S. | High Technology | D | CC | Chapter 11 | ||||||||
12/6/21 |
China Aoyuan Group Ltd. |
Cayman Islands | Homebuilders/real estate companies | SD | CCC | Missed principal payments | ||||||||
12/8/21 | Confidential | Confidential | Capital goods | D | CCC+ | Confidential | ||||||||
NR--Not rated. SD--Selective default. Data as of Dec. 8, 2021. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®. *Indicates the issuer defaulted multiple times in 2021. §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. |
Related Research
- China Aoyuan Downgraded To 'SD' On Nonpayment Of Borrowings; Ratings Withdrawn At The Company's Request, Dec. 6, 2021
- Global Credit Outlook 2022: Aftershocks, Future Shocks, And Transitions, Dec. 1, 2021
Default Studies
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2020 Annual Emerging And Frontier Markets Corporate Default And Rating Transition Study
- 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
Structured finance
- 2020 Annual Mexican Structured Finance Default And Rating Transition Study
- 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
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: | Patrick Drury Byrne, Dublin (00353) 1 568 0605; patrick.drurybyrne@spglobal.com |
Research Contributor: | Yogesh Kumar, CRISIL Global Analytical Center, an S&P affiliate, Mumbai |
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