Bangkok--28 Mar--Standard & Poor's
The 2011 global corporate default tally remains at three issuers, marking the fifth consecutive week without a global corporate default, said an article published today by Standard & Poor's Global Fixed Income Research, titled "Global Corporate Default Update (March 18 - 24, 2011) (Premium)." This is the longest gap between defaults since June 2007, when no companies defaulted in a six-week period.
Two of this year's defaults were based in the U.S., and one was based in the Czech Republic. By comparison, 22 global corporate issuers had defaulted by this time last year (16 U.S.-based issuers, one European issuer, two issuers based in the emerging markets, and three issuers based in the other developed region consisting of Australia, Canada, Japan, and New Zealand).
All three of this year's defaulters missed interest or principal payments, which was one of the top reasons for default last year. Of the defaults 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, one from regulatory directives, and one from administration.
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