Bangkok--11 Nov--Standard & Poor's
Standard & Poor's Ratings Services downgraded Italy-based publisher Seat PagineGialle to 'SD' this week after the publisher failed to make interest payments on its subordinated notes. This raised the tally of global corporate defaults so far in 2011 to 40 issuers, said an article published today by Standard & Poor's Global Fixed Income Research, titled "Global Corporate Default Update (Nov. 3-9, 2011)."
Of the total defaulters this year, 29 are based in the U.S., three are based in New Zealand, two are in Canada, and one each is in the Czech Republic, Greece, France, Israel, Italy, and Russia. Of the defaulters by this time in 2010, 53 were U.S.-based issuers, nine were from the other developed region (Australia, Canada, Japan, and New Zealand), eight were from the emerging markets, and two were European issuers.
Sixteen of this year's defaults were due to missed interest or principal payments and eight were due to distressed exchanges--both of which were among the top reasons for defaults in 2010. Bankruptcy filings followed with seven defaults, and regulatory actions accounted for three. Of the remaining defaults, one issuer failed to finalize refinancing on its bank loan, one had its banking license revoked by its country's central bank, another was appointed a receiver, and three were confidential.
By comparison, in 2010, 28 defaults resulted from missed interest or principal payments, 25 from Chapter 11 and foreign bankruptcy filings, 23 from distressed exchanges, three from receiverships, one from a regulatory directive, and one from administration.
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