Default, Transition, and Recovery: Global Weakest Links And Default Rates: The Corporate Default Rate Declines To 2%--Its Lowest Level Since Third-Quarter 2008 Aug 11
- ID: 1858334
- August 2011
- Region: Global
- Standard & Poors
The number of global weakest links increased slightly to 109 as of July 20, 2011, from 107 as of June 21. The weakest links are issuers rated 'B-' and lower with a negative outlook or ratings on CreditWatch negative. The 109 weakest links have total rated debt worth $184 billion. So far, only 21 issuers have defaulted in 2011 (through July 22)--six more since June, with a combined outstanding debt worth $43.20 billion. Eighty-two issuers defaulted on debt worth $97.48 billion in 2010 and 264 issuers defaulted on debt worth $627.7 billion in 2009. The highlights from this month's report are: The 12-month-trailing global corporate speculative-grade default rate decreased to 2.00% in June from 2.18% in May. Regionally, the U.S....
Companies mentioned in this report are:
- FirstBank Puerto Rico
- AMF Bowling Worldwide Inc.
- Buffets Inc.
- Centrais Eletricas do Para S.A.
- Hudson Products Holdings Inc.
- ATI Acquisition Co.
- Orchard Supply Hardware LLC
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
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >