Bangkok--22 Apr--Standard & Poor's
The number of global weakest links decreased to 105 as of April 13, 2011, from 108 the previous month and 111 in February 2011, said an article published today by Standard & Poor's, titled "Global Weakest Links And Default Rates: Further Declines In March." The 105 weakest links have total rated debt worth $141.04 billion.
Weakest links are issuers rated 'B-' and lower with a negative outlook or ratings on CreditWatch negative.
"So far in 2011, through April 13, only eight issuers have defaulted, with combined outstanding debt worth $2.3 billion," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "The 12-month-trailing global corporate speculative-grade default rate fell to 2.07% in March from 2.47% in February--its 14th consecutive monthly decline."
Regionally, the U.S. speculative-grade corporate default rate decreased for the 16th month in a row, to 2.46% in March from 2.75% in February. In Europe, the default rate fell to 0.99% from 1.49%, and the emerging markets default rate decreased to 1.05% from 1.23%.
Global corporate speculative-grade issuance remains strong in 2011, totaling $125.84 billion through April 13. New issuance reached a record-high $345 billion in 2010, following $203 billion in 2009 and only $56 billion in 2008.
The U.S. has the most weakest links, with 70 of the 105 entities (66.7%). "By sector, media and entertainment; oil and gas exploration and production; chemicals, packaging, and environmental services; banks; utilities; and consumer products had the highest concentrations of weakest links," said Ms. Vazza.
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Media Contact:
Mimi Barker, New York (1) 212-438-5054,
[email protected]
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760