On April 1, 2022, we lowered our ratings on Colorado-based natural gas pipeline company Ruby Pipeline LLC to 'D' (default) from 'CC' as the company missed a principal payment. This is the first midstream energy default of 2022,as the North American midstream energy industry's credit quality strengthened in 2021, rebounding from the effects of the pandemic and subsequent credit stress (see "Industry Top Trends 2022 North America Regulated Utilities," Feb. 28, 2022).
The energy and natural resources 12-month trailing speculative-grade default rate dropped to 3% as of Feb. 28, 2022, from a high of 17% a year prior.
This Weeks Observations:
- The year-to-date global corporate default tally increased to 16 with the addition of natural gas pipeline company Ruby Pipeline LLC and one confidential issuer.
- The U.S. jointly leads the default tally with eight, considerably lower than the total of 15 for the same period in 2021.
- We estimate the trailing-12-month speculative grade default rate for the U.S. to drop to 1.4% as of March 31, 2022.
Chart 1
Table 1
Global Corporate Default Summary | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Region | 12-Month Trailing Speculative-Grade Default Rate (%) | 2022 YTD | 2021 YTD | 2021 | Weakest Links | |||||||
U.S. | 1.4* | 8 | 15 | 40 | 121 | |||||||
Emerging market | 1.8 | 8 | 2 | 15 | 64 | |||||||
Europe | 0.7* | 0 | 8 | 14 | 61 | |||||||
Other developed | 2.2 | 0 | 1 | 3 | 10 | |||||||
Global | 1.5 | 16 | 26 | 72 | 256 | |||||||
Note: *Trailing-12-month speculative grade default rates from Feb. 28, 2021 – Mar. 31, 2022 are preliminary and subject to change . Year-to-date data as of April. 6, 2022. Weakest link data is as of Mar. 8, 2022. 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®. Copyright © 2018 by Standard & Poor’s Financial Services LLC. All rights reserved. |
Chart 2
Chart 3
Chart 4
Table 2
Global Corporate Defaults, 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 | Consumer Products | SD | CCC- | Missed principal payments | ||||||||
2/1/2022 | TPC Group Inc., (TPC Group LLC) | U.S. | Health care | D | CCC | Missed interest payments | ||||||||
2/4/2022 | Confidential | Confidential | Consumer Products | D | NR | Confidential | ||||||||
2/9/2022 | Confidential | Confidential | Consumer Products | 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 | ||||||||
2/11/2022 | Confidential | Confidential | Homebuilders/real estate companies | SD | CC | Confidential | ||||||||
2/17/2022 | U.S. TelePacific Holdings Corp. | U.S. | Telecommunications | SD | CCC- | Distressed exchange | ||||||||
3/15/2022 | Diamond Sports Group, LLC (Sinclair Broadcast Group Inc.) | U.S. | Media and Entertainment | SD | CC | Distressed exchange | ||||||||
3/21/2022 | Mulhacen Pte. Ltd. | Singapore | Financial Institutions | D | CC | Distressed exchange | ||||||||
3/24/2022 | MHP SE | Ukraine | Consumer Products | SD | B- | Missed interest payments | ||||||||
4/1/2022 | Ruby Pipeline LLC | U.S. | Utilities | D | CC | Missed principal payments | ||||||||
Data as of April 6, 2022. NR--Not rated. SD--Selective default. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro® Copyright © 2018 by Standard & Poor’s Financial Services LLC. All rights reserved. |
Related Research
- Industry Top Trends 2022: Oil And Gas, Jan. 25, 2022
- Ruby Pipeline LLC Downgraded To 'D' From 'CC' On Missed Principal Payment, April 1, 2022
- The Number Of North American ‘CCC’ Rated Issuers Is Steady Despite Subdued Primary Activity, Report Says, April 6, 2022
- COVID-19 Impact: Key Takeaways From Our Articles, April 7, 2022
- U.S. Corporate Rating Actions Tracker 2022 (As Of April 1), April 1, 2022
- Latin American Entities To Largely Skirt Fallout From Sanctions On Russia, April 5, 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
- 2020 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
- 2020 Annual U.S. Public Finance Default And Rating Transition Study
- 2020 Annual International Public Finance Default And Rating Transition Study
- 2020 Annual Mexican National Scale Corporate And Public Finance Default And Rating Transition Study
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 |
Patrick Drury Byrne, Dublin (00353) 1 568 0605; patrick.drurybyrne@spglobal.com | |
Vaishali Singh, Pune; vaishali.singh2@spglobal.com |
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