Key Takeaways
- The global corporate default tally rose to 91 as of July 31, 2023, with seven defaults in July, the lowest monthly tally so far in 2023.
- Europe had the only month-over-month increase in defaults, bringing the year-to-date tally to its second highest level in the last 15 years.
- Defaults because of bankruptcies are rising and reached 5x the numbers in 2022 or 2021.
- The number of 'CCC+' and below rated issuers continues to rise as the negative bias has also increased, likely signaling defaults will continue rising through 2023.
S&P Global Ratings' 2023 global corporate default tally has reached 91 following seven defaults in July:
- Brazil based airline Azul S.A.
- U.S. based multi-level marketing direct sales company NSA International LLC U.S. based grows and supply of organic and conventional stone fruits MVK Intermediate Holdings, LLC
- Ireland based pharmaceutical products manufacturers and distributor Mallinckrodt PLC
- U.S. based glass packaging manufacturer Anchor Glass Container Corp.
- U.S. based transaction processing service provider Exela Technologies Inc.
- U.S. based Dialysis company U.S. Renal Care Inc.
Monthly defaults fell to their lowest levels so far in 2023, with only seven defaults in July. Compared with previous years, the July monthly default tally is in line with 2021, which also had seven defaults, and is above the six in 2022. Despite this, the global corporate default tally has reached 91, more than double this point in 2022, and more than 24% above its 10-year average.
Meanwhile, Europe is the only region with increased defaults from the previous month (one), bringing the 2023 regional tally to 14. The regional tally is nearly 2.3x its previous year tally and has reached its second highest year-to-date level since 2008 (see chart 2). By sector, health care and consumer products have led defaults in Europe.
We can expect defaults in the region to continue to rise as the number of risky credits (issuers rated 'CCC+' and below) have been increasing as refinancing risk and weak operating performance remain the primary downgrade triggers. S&P Global expects the European speculative-grade default rate to increase to 3.6% in March 2024, from 3.1% as of June 2023 (see "The European Speculative-Grade Corporate Default Rate Could Rise To 3.6% By March 2024 As Stressors Mount", May 15, 2023).
Chart 1
Chart 2
Chart 3
Table 1
Regional default rates continue to increase | ||||||
---|---|---|---|---|---|---|
Region | 12-month trailing speculative-grade default rate (%) | Weakest links | ||||
U.S. | *3.5 | 207 | ||||
Emerging market | 2.1 | 40 | ||||
Europe | *2.9 | 53 | ||||
Other developed | 4.3 | 8 | ||||
Global | 3.0 | 308 | ||||
Note:* Trailing-12-month speculative grade default rates for from July 31, 2023 - July 31, 2023 are preliminary and subject to change. Trailing-12-month speculative grade default rates for from June 30, 2023- June 30, 2023. Year-to-date data as of July 31, 2023. Weakest link data is as of June 30, 2023. Other developed region includes Australia, Canada, Japan, and New Zealand. Default counts may include confidentially-rated issuers. Sources: S&P Global Ratings Credit Research and S&P Global Market Intelligence’s CreditPro®. |
The number of distressed exchanges continues to climb as 57% of the defaults in July defaulted because of a distressed exchange. The total tally of distressed exchanges has reached 38 this year, which is more than 138% higher than the previous year-to-date level. The number of bankruptcies has also been on the rise so far in 2023, and is now 5x times higher than both 2022 and 2021 levels (see chart 4).
Chart 4
Chart 5
Table 2
Year-to-date global corporate default tally rises | ||||||
---|---|---|---|---|---|---|
Date | Parent company | Country/market | Subsector | To | From | Reason |
1/3/2023 |
Moran Foods LLC |
U.S. | Retail/restaurants | SD | CCC+ | Distressed exchange |
1/16/2023 |
Americanas S.A. |
Brazil | Retail/restaurants | D | B | Missed principal and interest payments |
1/19/2023 |
Party City Holdings Inc. |
U.S. | Retail/restaurants | D | CCC | Bankruptcy |
1/20/2023 |
Mexarrend S.A.P.I. de C.V. |
Mexico | Financial institutions | D | CC | Missed principal and interest payments |
1/24/2023 |
Serta Simmons Bedding LLC |
U.S. | Consumer products | D | CCC- | Bankruptcy |
1/27/2023 |
Bed Bath & Beyond Inc. |
U.S. | Retail/restaurants | D | CC | Missed principal and interest payments |
1/30/2023 |
Cooper-Standard Holdings Inc. |
U.S. | Automotive | SD | CC | Distressed exchange |
1/31/2023 |
Missouri TopCo Ltd. |
U.K. | Consumer products | SD | CCC- | Distressed exchange |
1/31/2023 |
Invacare Corp. |
U.S. | Health care | D | NR | Bankruptcy |
2/3/2023 |
Oi S.A. |
Brazil | Telecommunications | D | CCC- | Missed principal and interest payments |
2/9/2023 |
KNB Holdings Corp. |
U.S. | Consumer products | D | CCC- | Bankruptcy |
2/10/2023 |
Yak Access LLC |
U.S. | Capital goods | D | CCC | Distressed exchange |
2/14/2023 |
K&N Parent Inc. |
U.S. | Automotive | D | CCC- | Distressed exchange |
2/15/2023 |
99 cents only stores LLC |
U.S. | Retail/restaurants | SD | CCC+ | Missed payments |
2/15/2023 |
Avaya Holdings Corp. |
U.S. | High technology | D | CC | Bankruptcy |
2/15/2023 |
Diamond Sports Group LLC |
U.S. | Media and entertainment | D | CCC- | Missed interest payments |
2/16/2023 | Confidential | Confidential | Media and entertainment | D | CC | Confidential |
2/16/2023 |
Stanadyne Holdings Inc. |
U.S. | Capital goods | D | NR | Bankruptcy |
2/17/2023 |
AMC Entertainment Holdings Inc. |
U.S. | Media and entertainment | SD | CC | Distressed exchange |
2/17/2023 |
Premier Brands Group Holdings LLC |
U.S. | Consumer Products | SD | CCC | Distressed exchange |
2/22/2023 |
Altisource Portfolio Solutions S.A. |
Luxembourg | Financial Institutions | SD | CC | Distressed exchange |
2/22/2023 |
Foodco Bondco SAU |
Spain | Retail/restaurants | SD | CCC- | Missed interest payments |
2/24/2023 |
Bausch Health Cos. Inc. |
Canada | Health care | SD | CCC+ | Distressed exchange |
2/28/2023 |
Equinox Holdings Inc. |
U.S. | Media and entertainment | SD | CCC- | Distressed exchange |
2/28/2023 |
Rising Tide Holdings Inc. |
U.S. | Retail/restaurants | SD | CC | Distressed exchange |
3/1/2023 |
Akorn Operating Co. LLC |
U.S. | Health Care | D | CCC+ | Bankruptcy |
3/2/2023 |
Community Health Systems Inc. |
U.S. | Health Care | SD | B- | Distressed exchange |
3/6/2023 |
LendingTree Inc. |
U.S. | Media and entertainment | SD | B- | Distressed exchange |
3/10/2023 |
Loyalty Ventures Inc. |
U.S. | Media and entertainment | D | CCC+ | Bankruptcy |
3/10/2023 |
Silicon Valley Bank |
U.S. | Financial institutions | D | BBB | Regulatory |
3/14/2023 |
Bioplan USA Inc. |
U.S. | Media and entertainment | D | CCC | Out-Of-Court Restructuring |
3/14/2023 |
Gol Linhas Aereas Inteligentes S.A. |
Brazil | Transportation | SD | CC | Distressed exchange |
3/14/2023 |
Technicolor Creative Studios |
France | Media and entertainment | D | CCC- | Missed interest payments |
3/16/2023 |
Mallinckrodt plc |
Ireland | Health care | SD | B- | Distressed exchange |
3/17/2023 |
National CineMedia Inc. |
U.S. | Media and entertainment | D | CCC- | Missed interest payments |
3/17/2023 |
SVB Financial Group |
U.S. | Financial institutions | D | NR | Regulatory |
3/20/2023 |
TV Azteca S.A. de C.V. |
Mexico | Media and entertainment | D | NR | Bankruptcy |
3/23/2023 |
Flint HoldCo S.a.r.l. |
Luxembourg | Chemicals, packaging, and environmental services | SD | CCC | Missed principal payments |
3/31/2023 |
Toro Private Holdings I Ltd. |
U.K. | Transportation | SD | CCC+ | Distressed exchange |
3/31/2023 |
Wahoo Fitness Acquisition LLC |
U.S. | Consumer products | D | CCC- | Missed principal and interest payments |
4/5/2023 |
FQM (Akubra) Inc. |
Canada | Metals, mining, and steel | D | NR | Bankruptcy |
4/6/2023 |
Lannett Co. Inc. |
U.S. | Health care | SD | CCC+ | Missed interest payments |
4/6/2023 |
Rodan & Fields LLC |
U.S. | Consumer products | D | CCC- | Out-Of-Court Restructuring |
4/6/2023 |
Covis Finco S.a.r.l. |
Switzerland | Health care | SD | CCC+ | Distressed exchange |
4/6/2023 | Confidential | Confidential | Capital goods | D | CCC- | Confidential |
4/10/2023 |
QualTek LLC |
U.S. | Capital goods | SD | CCC+ | Missed interest payments |
4/10/2023 | Confidential | Confidential | Media and entertainment | D | CC | Confidential |
4/12/2023 | Confidential | Confidential | Utlities | D | CCC- | Confidential |
4/12/2023 |
Guacolda Energia S.A. |
Chile | Utlities | D | CC | Distressed exchange |
4/17/2023 |
David's Bridal Inc. |
U.S. | Consumer Products | D | NR | Bankruptcy |
4/17/2023 |
Adler Group S.A. |
Luxembourg | Homebuilders/real estate companies | SD | CC | Distressed exchange |
4/19/2023 |
Skillz Inc. |
U.S. | Media and entertainment | SD | CCC+ | Distressed exchange |
4/24/2023 |
Bed Bath & Beyond Inc. |
U.S. | Retail/restaurants | D | CCC- | Bankruptcy |
4/27/2023 |
Burger BossCo Intermediate Inc. |
U.S. | Retail/restaurants | D | CCC- | Missed principal and interest payments |
4/27/2023 |
Grupo Idesa S.A. de C.V. |
Mexico | Chemicals, packaging, and environmental services | SD | CC | Distressed exchange |
5/1/2023 |
FXI Holdings Inc. |
U.S. | Chemicals, packaging, and environmental services | SD | CC | Distressed exchange |
5/2/2023 | Confidential | Confidential | Consumer products | D | CCC- | Confidential |
5/2/2023 |
WeWork Cos. LLC |
U.S. | Media and entertainment | SD | CC | Distressed exchange |
5/5/2023 |
Frigoglass SAIC |
Greece | Consumer products | SD | CC | Distressed exchange |
5/8/2023 |
CatLuxe Acquistion Sarl |
Luxembourg | Consumer products | D | CC | Out-Of-Court Restructuring |
5/10/2023 |
Range Parent Inc. |
U.S. | Capital goods | SD | CCC | Distressed exchange |
5/15/2023 |
Telesat Canada |
Canada | Telecommunications | SD | CCC+ | Distressed exchange |
5/16/2023 |
Envision Healthcare Corp. |
U.S. | Health care | D | CCC | Bankruptcy |
5/16/2023 |
Monitronics International Inc. |
U.S. | Media and entertainment | D | CCC | Bankruptcy |
5/17/2023 |
At Home Group Inc. |
U.S. | Retail/restaurants | SD | CCC+ | Distressed exchange |
5/17/2023 |
CareerBuilder LLC |
U.S. | Media and entertainment | SD | CCC | Distressed exchange |
5/18/2023 |
Curo Group Holdings Corp. |
U.S. | Financial institutions | SD | B- | Distressed exchange |
5/18/2023 |
Venator Materials PLC |
U.K. | Chemicals, packaging, and environmental services | D | CCC- | Bankruptcy |
5/22/2023 |
LifeScan Global Corp. |
U.S. | Health care | SD | CC | Distressed exchange |
5/24/2023 | Confidential | Confidential | Media and entertainment | D | CCC | Confidential |
5/29/2023 | Confidential | Confidential | Forest products and building materials | SD | CCC- | Confidential |
6/1/2023 |
Genesis Care Pty Ltd. |
Australia | Health care | D | CCC- | Bankruptcy |
6/1/2023 |
Lucky Bucks LLC |
U.S. | Media and entertainment | D | CCC- | Missed principal and interest payments |
6/2/2023 |
Diebold Nixdorf Inc. |
U.S. | High technology | D | CC | Bankruptcy |
6/4/2023 |
PGX Holdings Inc. |
U.S. | Media and entertainment | D | NR | Bankruptcy |
6/5/2023 |
KCIBT Holdings L.P. |
U.S. | Consumer Products | SD | CCC | Distressed exchange |
6/6/2023 |
Cyxtera Technologies Inc. |
U.S. | Telecommunications | D | CCC- | Bankruptcy |
6/7/2023 |
U.S. TelePacific Holdings Corp. |
U.S. | Telecommunications | SD | CCC- | Distressed exchange |
6/12/2023 |
Tacora Resources Inc. |
Canada | Metals, mining, and steel | D | CCC- | Missed Interest Payments |
6/12/2023 |
InterCement Brasil S.A. |
Brazil | Forest products and building materials | SD | CC | Missed principal and interest payments |
6/13/2023 |
Instant Brands Holdings Inc. |
U.S. | Consumer products | D | CCC- | Bankruptcy |
6/21/2023 |
Photo Holdings LLC |
U.S. | Media and entertainment | SD | CC | Distressed exchange |
6/23/2023 |
URS Holdco Inc. |
U.S. | Transportation | SD | CCC+ | Distressed exchange |
6/30/2023 | Confidential | Confidential | Aerospace and defense | D | CCC- | Confidential |
7/14/2023 |
Azul S.A. |
Brazil | Transportation | SD | CC | Distressed exchange |
7/14/2023 |
NSA International LLC |
U.S. | Consumer Products | D | CCC- | Distressed exchange |
7/18/2023 |
MVK Intermediate Holdings LLC |
U.S. | Consumer Products | SD | CCC- | Missed Interest Payments |
7/18/2023 |
Mallinckrodt plc |
Ireland | Health care | SD | CCC | Missed Interest Payments |
7/20/2023 |
Anchor Glass Container Corp. |
U.S. | Chemicals, packaging, and environmental services | SD | CCC | Missed Interest Payments |
7/21/2023 |
Exela Technologies Inc. |
U.S. | Media and entertainment | SD | CC | Distressed exchange |
7/28/2023 |
U.S. Renal Care Inc. |
U.S. | Health care | D | CCC+ | Distressed exchange |
Data as of July 31, 2023. NR--Not rated. SD--Selective default. Sources: S&P Global Ratings Credit Research & Insights and S&P Global Market Intelligence's CreditPro®. |
Related Research
- U.S. Renal Care Inc. Downgraded To 'D' From 'CCC+' On Distressed Debt Restructuring, July 28, 2023
- Ukrainian Electricity Producer DTEK Renewables FC Rating Lowered To 'SD' After Distressed Debt Exchange In February 2023, July 25, 2023
- Exela Technologies Inc. Downgraded To 'SD' From 'CC' On Completion Of Subpar Debt Exchange; Debt Rating Lowered, July 22, 2023
- Anchor Glass Container Corp. Downgraded To 'SD' On Delayed Interest Payments, Term Loan Ratings Lowered To 'D', July 21, 2023
- MVK Intermediate Holdings LLC Ratings Lowered To 'SD' On Deferred Interest Payments; Ratings Subsequently Withdrawn, July 19, 2023
- Mallinckrodt PLC Downgraded To 'SD' On Missed Interest Payments, 2028 And 2029 Secured Note Ratings Lowered To 'D', July 18, 2023
- NSA International LLC Downgraded To 'D'; Debt Ratings Lowered, July 15, 2023
- Brazilian Airline Azul S.A. Downgraded To 'SD' Following Distressed Debt Exchange, June 15, 2023
Default Studies
More analysis and statistics are available in our annual default studies, published on Ratings Direct:
Corporate (financial and nonfinancial)
- 2021 Annual Global Financial Services Default And Rating Transition Study
- 2022 Annual Global Corporate Default And Rating Transition Study
- 2021 Annual U.S. Corporate Default And Rating Transition Study
- 2022 Annual European Corporate Default And Rating Transition Study
- 2022 Annual Japanese Corporate And Public Finance Default And Rating Transition Study
- 2021 Annual Asia Corporate Default And Rating Transition Study
- 2022 Annual Taiwan Ratings Corp. Corporate Default And Rating Transition Study
- 2022 Annual Emerging And Frontier Markets Corporate Default And Rating Transition Study
- 2021 Annual Greater China Corporate Default And Rating Transition Study
Structured finance
- 2022 Annual Global Structured Finance Default And Rating Transition Study
- 2022 Annual Japanese Structured Finance Default And Rating Transition Study
- 2021 Annual European Structured Finance Default And Rating Transition Study
- 2022 Annual Taiwan Ratings Corp. Structured Finance Default And Rating Transition Study
- 2021 Annual Mexican Structured Finance Default And Rating Transition Study
- 2022 Annual Global Leveraged Loan CLO Default And Rating Transition Study
Public finance
- 2022 Annual U.S. Public Finance Default And Rating Transition Study
- 2022 Annual International Public Finance Default And Rating Transition Study
- 2021 Annual Mexican National Scale Corporate And Public Finance Default And Rating Transition Study
Sovereign and international public finance
This report does not constitute a rating action.
Credit Research & Insights: | Nicole Serino, New York + 1 (212) 438 1396; nicole.serino@spglobal.com |
Patrick Drury Byrne, Dublin (00353) 1 568 0605; patrick.drurybyrne@spglobal.com | |
Research Contributor: | Vaishali Singh, Pune; vaishali.singh2@spglobal.com |
No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness, or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.
Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment, and experience of the user, its management, employees, advisors, and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.
To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.spglobal.com/usratingsfees.