Bangkok--11 Oct--Standard & Poor's
U.S. retailer Loehmann's Holdings and Canada-based Angiotech Pharmaceuticals missed interest payments this week. These changes bring the year-to-date 2010 global corporate default tally to 68, said an article published today by Standard & Poor's Global Fixed Income Research.
By region, the current year-to-date default tallies are 46 in the U.S., three in Europe, eight in the emerging markets, and 11 in the other developed region (Australia, Canada, Japan, and New Zealand), according to the article, titled "Global Corporate Default Update (Oct. 1 - 7, 2010) (Premium)."
Please note that we have revised these figures as part of our quarter-end data reconciliation to account for issuers that had ratings withdrawn prior to default.
So far this year, missed interest or principal payments are responsible for 23 defaults; Chapter 11 and foreign bankruptcy filings account for 22; distressed exchanges account for 18; receiverships account for three; and regulatory directives and administration account for one default each.
Of the global corporate defaulters in 2010, 42% of issues with available recovery ratings had recovery ratings of '6' (indicating our expectation for negligible recovery of 0% to 10%), 12% of the issues had recovery ratings of '5' (modest recovery prospects of 10% to 30%), 8% had recovery ratings of '4' (average recovery prospects of 30% to 50%), and 17% had recovery ratings of '3' (meaningful recovery prospects of 50% to 70%). And for the remaining two rating categories, 12% of the issues had recovery ratings of '2' (substantial recovery prospects of 70% to 90%) and 10% had recovery ratings of '1' (very high recovery prospects of 90% to 100%).
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