Bangkok--11 Apr--Standard & Poor's
After seven consecutive weeks without a global corporate default, Perkins & Marie Callender's Inc. missed an interest payment on its senior unsecured notes this week, said an article published today by Standard & Poor's. The article, which is titled "Global Corporate Default Update (April 1 - 7, 2011) (Premium)," says that this raises the 2011 global corporate default tally to four issuers.
Three of this year's defaults were based in the U.S., and one was based in the Czech Republic. By comparison, 29 global corporate issuers had defaulted by this time in 2010 (20 U.S.-based issuers, one European issuer, two issuers from the emerging markets, and six in the other developed region, which consists of Australia, Canada, Japan, and New Zealand).
All four of this year's defaulters missed interest or principal payments, which was also one of the top reasons for default last year. Of the defaults in 2010, 28 resulted from missed interest or principal payments, 25 stemmed from Chapter 11 and foreign bankruptcy filings, 23 were from distressed exchanges, three were from receiverships, one was from regulatory directives, and one was from administration.
"Following a year of record-setting highs in terms of global corporate default statistics, 2010 provided the markets with a noticeable reversal," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research group. In 2010, 81 global corporate issuers defaulted, down from the record high of 265 in 2009.
None of the 81 defaulters began the year rated investment grade. The debt amount affected by these defaults fell to $95.7 billion, also considerably lower than in 2009.
This article is part of our premium Global Fixed Income Research content, which is available to premium subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.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.
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