Bangkok--24 Dec--Standard & Poor's
The number of global weakest links has increased to 111 since our previous report, the only increase this year, said an article published today by Standard & Poor's, titled "Global Bond Markets' Weakest Links And Monthly Default Rates (Premium)."
"The number of weakest links as of Dec. 14 was up by one from 110 in November 2010 but down from 226 a year ago," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "The 111 weakest links combined have rated debt worth $132.54 billion."
Weakest links are issuers rated 'B-' and lower with a negative outlook or ratings on CreditWatch negative.
Of the 111 entities, the U.S. leads in the number of weakest links, with 77 (69%). By sector, media and entertainment; oil and gas exploration and production; chemicals, packaging, and environmental services; consumer products; finance companies; and utilities were the most vulnerable, with the highest concentrations of weakest links.
So far in 2010 (through Dec. 14), 78 issuers have defaulted, affecting debt worth $93.61 billion. In contrast, in 2009, 264 issuers defaulted, affecting debt worth $627.7 billion, and in 2008, 126 defaults were recorded, affecting debt worth $433 billion.
"The 12-month-trailing global corporate speculative-grade default rate fell to 2.91% in November 2010 from 3.12% in October 2010--its 10th consecutive monthly decline," said Ms. Vazza. "Regionally, the U.S. speculative-grade corporate default rate decreased for the 12th month in a row, to 3.35% in November from 3.37% in October."
In Europe, the default rate fell to 1.08% in November from 3.23% in October after two months at 2.75% in August and September, and the emerging markets default rate decreased to 1.23% from 1.78%.
For subscribers who have access to the Global Credit Portal, click here for the article "Global Bond Markets' Weakest Links And Monthly Default Rates." For subscribers who have access to premium Global Fixed Income Research content, find the article here "Global Bond Markets' Weakest Links And Monthly Default Rates (Premium)." For more information or data inquiries, please call Client Services at 1-877-772-5436.
The standard version of this article is part of our standard Global Fixed Income Research content. The premium version contains expanded analysis of the article's most significant points, typically broken out by sector and region. Also in the premium version are in-depth charts and tables, the underlying data of which are available for download. 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:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760