Bangkok--4 Dec--Standard & Poor's
U.S.-based Yellow Pages publisher Local Insight Regatta Holdings filed for Chapter 11 on Nov. 19. This raises the year-to-date 2010 global corporate default tally by one from our previous report to 75 defaults, said an article published today by Standard & Poor's, titled "Global Corporate Default Update (Nov. 19 - Dec. 2, 2010) (Premium)."
"By region, the current year-to-date default tallies are 52 in the U.S., three in Europe, nine in the emerging markets, and 11 in the other developed region," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. The other developed region includes Australia, Canada, Japan, and New Zealand.
So far this year, missed interest or principal payments are responsible for 27 defaults, Chapter 11 and foreign bankruptcy filings account for 23, distressed exchanges account for 20, receiverships are responsible for three, and regulatory directives and administration account for one default each.
Of the global corporate defaulters in 2010, 41% of issues with available recovery ratings had recovery ratings of '6' (indicating our expectation for negligible recovery of 0% to 10%), 10% of the issues had recovery ratings of '5' (modest recovery prospects of 10% to 30%), 10% had recovery ratings of '4' (average recovery prospects of 30% to 50%), and 16% had recovery ratings of '3' (meaningful recovery prospects of 50% to 70%). And for the remaining two rating categories, 13% 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%).
This article is part of our premium Global Fixed Income Research content, which is available to premium subscribers to RatingsDirect on the Global Credit Portal at www.globalcreditportal.com and to RatingsDirect at www.ratingsdirect.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
Mimi Barker, New York (1) 212-438-5054,
[email protected]
Analyst Contact:
Diane Vazza, New York (1) 212-438-2760A