Bangkok--20 Dec--Standard & Poor's
U.S.-based grocery store operator Great Atlantic & Pacific Tea Co. filed a voluntary petition under Chapter 11 of the Bankruptcy Code this week. This raises the year-to-date 2010 global corporate default tally to 76, said an article published today by Standard & Poor's.
By region, the current year-to-date default tallies are 53 in the U.S., three in Europe, nine 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 (Dec. 10 - 16, 2010) (Premium)."
So far this year, missed interest or principal payments are responsible for 27 defaults, Chapter 11 and foreign bankruptcy filings account for 24, 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%), 11% had recovery ratings of '4' (average recovery prospects of 30% to 50%), and 15% 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%).
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