The 2022 global corporate default tally remained at 31 this week, with no defaults since our last report. The total is at its lowest year-to-date level since 2014. However, risks to credit conditions are increasing, including persistent inflation, lower growth forecasts, and rising financing costs.
We expect both the U.S. and European 12-month-trailing speculative-grade default rates to rise to 3% by March 2023 from 1.4% and 0.7%, respectively, as of March 2022. (For details, see "The European Speculative-Grade Corporate Default Rate Could Rise To 3% By March 2023," May 18, 2022, and "The U.S. Speculative-Grade Corporate Default Rate Could Reach 3% By 2023 As Risks Continue To Increase," May 19, 2022.)
This Week's Observations
- Regionally, defaults in the U.S. and Europe are currently 38% and 55% lower than levels at the same time last year, respectively, but we expect the pace of defaults in these regions to pick up.
- The homebuilders and utilities sectors are the only sectors with default totals so far this year that are higher than the previous two years.
Table 1
The 2022 Year-To-Date Global Corporate Default Total Remains Unchanged This Week | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Region | 12-month-trailing speculative-grade default rate (%) | 2022 YTD | 2021 YTD | 2021 | Weakest links | |||||||
U.S. | 1.3* | 15 | 24 | 40 | 121 | |||||||
Emerging markets | 2.0 | 11 | 6 | 15 | 64 | |||||||
Europe | 0.9* | 5 | 11 | 14 | 61 | |||||||
Other developed | 1.5 | 0 | 1 | 3 | 10 | |||||||
Global | 1.4 | 31 | 42 | 72 | 256 | |||||||
*Trailing-12-month speculative-grade default rates for March 31, 2021–March 31, 2022, and for the U.S. and Europe for April 30, 2022-April 30, 2022, are preliminary and subject to change. Year-to-date data as of May 18. Weakest link data is as of March 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®. |
Chart 1
Chart 2
Table 2
Defaults Of 'CCC+' And Lower Rated Issuers Have Increased 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 | ||||||||
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 | ||||||||
Data as of May 18, 2022. NR--Not rated. SD--Selective default. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro®. |
Related Research
- The European Speculative-Grade Corporate Default Rate Could Rise To 3% By March 2023, May 18, 2022
- Global Macro Update: Growth Forecasts Lowered On Longer Russia-Ukraine Conflict And Rising Inflation, May 18, 2022
- Ratings Weekly Digest, May 18, 2022
- Global Credit Conditions Special Update: Inflation, War, And COVID Drag On, May 17, 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 Japanese Corporate Default And Rating Transition Study
- 2021 Annual U.S. 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
- 2020 Annual Global Structured Finance Default And Rating Transition Study
U.S. public finance
Sovereign and international public finance
- 2021 Annual Global Sovereign Default And Rating Transition Study
- 2020 Annual International Public Finance 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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