Bangkok--13 Jun--Standard & Poor's
The 2011 global corporate default tally remains at 15 after no issuers defaulted this week, said an article published today by Standard & Poor's, titled "Global Corporate Default Update (June 3 - 9, 2011) (Premium)." This marks the fifth consecutive week without a global corporate default.
Ten of this year's defaults were based in the U.S., two were based in New Zealand, and one each was based in Canada, the Czech Republic, and Russia. By comparison, 41 global corporate issuers had defaulted by this time in 2010. Of these defaulters, 29 were U.S.-based issuers, two were European issuers, three were from the emerging markets, and seven were in the other developed region (Australia, Canada, Japan, and New Zealand).
Six of this year's defaults were due to distressed exchanges and five were due to missed interest or principal payments--both among the top reasons for default in 2010. Of the remaining four, two issuers defaulted after they filed for bankruptcy, another had its banking license revoked by its country's central bank, and the fourth was forced into liquidation as a result of regulatory action.
Of the defaults in 2010, 28 defaults resulted from missed interest or principal payments, 25 resulted from Chapter 11 and foreign bankruptcy filings, 23 from distressed exchanges, three from receiverships, one from regulatory directives, and one from administration.
Following a year of record-setting highs in terms of global corporate default statistics, 2010 provided the markets with a noticeable reversal. 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.
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