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Default, Transition, and Recovery: Defaults Slow In July

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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

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Chart 2

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Chart 3

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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

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Chart 5

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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

Default Studies

More analysis and statistics are available in our annual default studies, published on Ratings Direct:

Corporate (financial and nonfinancial)
Structured finance
Public finance
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

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