Highlights from this month's report are: Through July 14, 2008, 42 companies have defaulted, affecting debt worth $33.6 billion. This already surpassed the 22 defaults recorded in all of 2007 and 30 defaults in 2006. Of the 42 defaults, 41 are domiciled in the U.S., and one is from Canada. The U.S. also leads in the number of weakest links?entities that are closest to the default threshold?with 118 (81%) of the 145 entities. Through the first half of 2008, defaults have increased significantly in the U.S. but remain scarce elsewhere. The 12-month trailing global corporate speculative-grade bond default rate declined marginally to 1.44% in June from 1.45% in May, remaining below its long-term (1981-2007) average of 4.35% for 53 consecutive...
Companies mentioned in this report are:
- Ally Financial Inc.
- Six Flags Entertainment Corp.
- Indymac Bancorp
- AdvancePierre Foods Inc.
- Gainey Corp.
- JHT Holdings Inc.
- GWLS Holdings Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
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