Bangkok--17 Jan--Standard & Poor's
The year-to-date 2011 global corporate default tally remains at zero after no issuers defaulted this week, said an article published today by Standard & Poor's, titled "Global Corporate Default Update (Jan. 7 - 13, 2011) (Premium)." By comparison, eight issuers defaulted during the same period last year (six based in the U.S., one in Australia, and one in Canada).
In full-year 2010, global corporate defaults totaled 81. By region, the default tallies were 61 in the U.S., two in Europe, eight in the emerging markets, and 10 in the other developed region (Australia, Canada, Japan, and New Zealand). Please note that we have revised these figures as part of our quarter-end data reconciliation process to account for issuers that had ratings withdrawn prior to default. We included these issuers in the default rates listed in the table if they were rated 12 months prior to default.
In 2010, 28 defaults resulted from missed interest or principal payments, 25 defaults resulted from Chapter 11 and foreign bankruptcy filings, 23 from distressed exchanges, three from receiverships, and one each from regulatory directives and administration.
Of the global corporate defaulters in 2010, 40% 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 17% 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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