S&P Global Ratings' 2022 global corporate default tally has increased to 31 after three companies defaulted since our last report:
- Pennsylvania-based power generation and infrastructure company Talen Energy Supply LLC
- Germany-based gaming company Safari Beteiligungs GmbH
- One confidential issuer
The default of Talen Energy marks the first nonconfidential bankruptcy of 2022--a historically low tally (see chart 1). So far in 2022, missed interest payments lead the tally with 12, followed by distressed exchanges with 11.
U.S. and European defaults remain lower than at this point in 2021 (see table 1), but the gap may close, particularly in Europe, where two-thirds of companies rated 'CCC+' or below have less-than-adequate liquidity, indicating the sources of funding available to them in the next 12 months closely match their expected uses of funds. Thus, these issuers will be highly dependent on operating performance or their ability to obtain liquidity from external sources, which may prove difficult given current regional challenges (see "Risky Credits: The Number Of European 'CCC' Issuers Rises, While Liquidity And Leverage Indicators Point To Potential Future Stress," May 11, 2022).
This Week's Observations
- This year's global default tally remains nearly one-quarter lower than the 2021 year-to-date total of 41.
- The emerging markets region is the only region with defaults above previous year-to-date totals.
- Defaults in the homebuilders and real estate sector and utilities sector are higher than at this point in 2021.
Table 1
Year-To-Date Defaults Are 24% Lower Than Last Year | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Global corporate default summary | ||||||||||||
Region | 12-month-trailing speculative-grade default rate (%) | 2022 YTD default tally | 2021 YTD default tally | 2021 default tally | Weakest links tally | |||||||
U.S. | 1.29* | 15 | 23 | 40 | 121 | |||||||
Emerging markets | 2.0 | 11 | 6 | 15 | 64 | |||||||
Europe | 0.94* | 5 | 11 | 14 | 61 | |||||||
Other developed | 1.5 | 0 | 1 | 3 | 10 | |||||||
Global | 1.4 | 31 | 41 | 72 | 256 | |||||||
Notes: Other developed region includes Australia, Canada, Japan, and New Zealand. Default counts may include confidentially rated issuers. *Trailing-12-month speculative-grade default rates from March 31, 2021, to March 31, 2022, are preliminary and subject to change. Year-to-date data as of May 11, 2022. Weakest link data as of March 8, 2022. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®. |
Chart 1
Chart 2
Table 2
The 2022 Global Corporate Default Tally Reaches 31 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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 | ||||||||
4/7/2022 |
Owl Finance Ltd. (Hibu Group Ltd.) |
U.K. | Media and entertainment | SD | CC | Distressed exchange | ||||||||
4/7/2022 |
PSS Industrial Group Corp. |
U.S. | Utilities | D | CCC- | Missed principal and interest payments | ||||||||
4/8/2022 |
Guangzhou R&F Properties Co. Ltd. |
China | Homebuilders/real estate companies | SD | CC | Distressed exchange | ||||||||
4/8/2022 |
Kernel Holding S.A. |
Ukraine | Consumer products | SD | B- | Missed interest payments | ||||||||
4/11/2022 | Confidential | Cayman Islands | Homebuilders/real estate companies | SD | CC | Confidential | ||||||||
4/11/2022 |
Promotora de Informaciones S.A. |
Spain | Media and entertainment | SD | CC | Distressed exchange | ||||||||
4/12/2022 |
Dunn Paper Holdings Inc. |
U.S. | Chemicals, packaging, and environmental services | D | CCC | Missed interest payments | ||||||||
4/12/2022 |
Grupo Kaltex S.A. de C.V. |
Mexico | Consumer products | D | CCC- | Missed principal payments | ||||||||
4/12/2022 |
Petropavlovsk PLC |
U.K. | Metals, mining, and steel | SD | CCC- | Missed interest payments | ||||||||
4/13/2022 | Confidential | Confidential | High technology | D | CCC | Confidential | ||||||||
4/14/2022 |
EuroChem Group AG |
Switzerland | Chemicals, packaging, and environmental services | SD | CCC- | Missed interest payments | ||||||||
4/22/2022 |
Wesco Aircraft Holdings Inc. (Wolverine Intermediate Holding Corp.) |
U.S. | Aerospace and defense | SD | CCC+ | Distressed exchange | ||||||||
5/3/2022 |
Envision Healthcare Corp. (Envision Healthcare Holdings Inc.) |
U.S. | Health care | SD | CCC | Distressed exchange | ||||||||
5/6/2022 |
Safari Beteiligungs Gmbh (Dice Midco Sarl) |
Germany | Media and entertainment | SD | CC | Distressed exchange | ||||||||
5/10/2022 |
Talen Energy Supply LLC (Talen Energy Corp.) |
U.S. | Utilities | D | CCC | Bankruptcy | ||||||||
NR--Not rated. SD--Selective default. Data as of May 11, 2022. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®. |
Related Research
- Risky Credits: The Number Of European 'CCC' Issuers Rises, While Liquidity And Leverage Indicators Point To Potential Future Stress, May 11, 2022
- Talen Energy Supply LLC Downgraded To 'D' On Filing For Voluntary Reorganization, May 11, 2022
- Macro Risks And Diverging End Markets Overshadow U.S. Tech's Mostly Good Results, May 9, 2022
- Safari Beteiligungs GmbH Ratings Lowered To 'SD' (Selective Default) From 'CC' On Court Approval And Sanction Of Scheme, May 6, 2022
- Despite Rising Risks, Yield Curve Is Not Yet Signaling Recession, May 4, 2022
Default Studies
More analysis and statistics are available in our annual default studies, published on RatingsDirect:
Corporate (financial and nonfinancial)
- 2021 Annual Global Corporate Default And Rating Transition Study
- 2021 Annual U.S. Corporate Default And Rating Transition Study
- 2021 Annual Japanese 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 Mexican National Scale Corporate And Public Finance Default And Rating Transition Study
- 2020 Annual Emerging And Frontier Markets Corporate Default And Rating Transition Study
Structured finance
- 2021 Annual Japanese Structured Finance Default And Rating Transition Study
- 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
U.S. public finance
- 2020 Annual U.S. 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
- 2021 Annual Global 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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