The 2022 global corporate default tally remains at 10, with no defaults since our last report on Feb. 24. The total also remains well below the 18 defaults during the same period in 2021.
Emerging markets is the only region where defaults so far in 2022 (four) are higher than the previous year (two) as risks in the region are increasing. The Russia-Ukraine conflict threatens to keep energy prices high, reinforcing price pressures from food, logistic charges, and persistent supply disruptions (see "What Higher Energy Prices Mean For Emerging Markets," March 3, 2022). The 12-month-trailing speculative-grade default rate increased in emerging markets in January to 1.9% from 1.8% as of Dec. 31, 2021.
This Week's Observations
- The year-to-date global corporate default tally of 10 is at its lowest year-to-date level since 2014.
- The U.S. region leads the tally with six, followed by the emerging markets with four, while Europe and the other developed region have no defaults so far in 2022 (see table 1).
Table 1
Both The U.S. And European Speculative-Grade Default Rates Decreased In January | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Region | 12-month-trailing speculative-grade default rate (%) | 2022 YTD | 2021 YTD | 2021 | Weakest links | |||||||
U.S. | 1.5 | 6 | 12 | 40 | 131 | |||||||
Emerging markets | 1.9 | 4 | 2 | 15 | 18 | |||||||
Europe | 1.7 | 0 | 4 | 14 | 49 | |||||||
Other developed | 2.2 | 0 | 0 | 3 | 9 | |||||||
Global | 1.6 | 10 | 18 | 72 | 207 | |||||||
Note: Trailing-12-month speculative grade default rates from Jan. 31, 2021–Jan. 31, 2022. Year-to-date data as of March 2, 2022. Weakest link data is as of Dec. 31, 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®. |
Chart 1
Chart 2
Table 2
Global Corporate Defaults Tally Remains At 10 So Far In 2022 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Date | Parent company | Country/market | Subsector | To | From | Reason | ||||||||
1/4/2022 | ION Geophysical Corp. | U.S. | Oil and gas | D | CCC | Missed principal and interest payments | ||||||||
1/4/2022 | Confidential | Confidential | Utilities | D | NR | Confidential | ||||||||
1/13/2022 |
R&F Properties (HK) Co. Ltd. |
Hong Kong | Homebuilders/real estate companies | SD | CC | Distressed exchange | ||||||||
1/19/2022 | Confidential | Confidential | Homebuilders/real estate companies | SD | CCC- | Confidential | ||||||||
1/24/2022 |
Fusion Connect Inc. |
U.S. | Telecommunications | SD | CC | Distressed exchange | ||||||||
2/1/2022 |
Future Retail Ltd. |
India | Retail/restaurants | SD | CCC- | Missed principal payments | ||||||||
2/1/2022 |
TPC Group Inc., (TPC Group LLC) |
U.S. | Chemicals, packaging, and environmental services | D | CCC | Missed interest payments | ||||||||
2/9/2022 | Confidential | Confidential | Retail/restaurants | SD | CCC | Confidential | ||||||||
2/10/2022 |
Credito Real, S.A.B. de C.V., SOFOM, E.N.R. |
Mexico | Financial institutions | SD | CCC- | Missed principal payments | ||||||||
2/17/2022 |
U.S. TelePacific Holdings Corp. |
U.S. | Telecommunications | SD | CCC- | Distressed exchange | ||||||||
Data as of March 2, 2022. NR--Not rated. SD--Selective default. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®. |
Related Research
- U.S. Corporate Bond Yields As Of March 2, 2022, March 3, 2022
- What Higher Energy Prices Mean For Emerging Markets, March 3, 2022
- Ratings Actions Waypoint: The Russia-Ukraine Conflict, March 3, 2022
- Ratings Weekly Digest: March 2, 2022, March 2, 2022
- Rising Risks Could Undermine Europe's Slowing Default Trend , Feb. 28, 2022
- Risky Credits: Clouds On The Horizon For North American 'CCC' Rated Companies, Feb. 24, 2022
- 'BBB Pulse': Treading Water As Positive Momentum Starts To Subside, Feb. 24, 2022
- The S&P/LSTA Leveraged Loan Index Default Rate Is Expected To Reach 1.5% In December 2022 As Risks Rise, Feb. 23, 2022
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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