Bangkok--15 Aug--Standard & Poor's
The 12-month trailing global corporate speculative-grade bond default rate fell to a record low of 1.03% in July, according to a report published today by Standard & Poor's Ratings Services. The article, which is titled "Global Bond Markets' Weakest Links And Monthly Default Rates," says that the default rate has been below its long-term (1981-2005) average of 4.61% for 30 consecutive months.
From January through July 2006, 14 defaults (two more than reported a month earlier) were recorded in total among entities rated by Standard & Poor's, affecting rated debt worth US$5.7 billion.
"Notwithstanding the July decline, our prediction remains that the default rate will edge up slowly from its 2006 trough," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research. Results from a proprietary forecast model indicate that U.S. speculative-grade bond default rates will continue to edge up slowly in the next few quarters, reaching 2.4% by year-end 2006 and 3.4% four quarters ahead (results are based on running the model on Aug. 10, 2006).
The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com . If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to [email protected] . The report is also available at www.sandp.com/gfir , listed under Global Fixed Income Research. If you have not previously registered with the site, you will need to do so to access this material. Registration requires minimal information and is free. Members of the media may request a copy of this report by contacting the media representative name provided.
Media Contact:
Mimi Barker, New York (1) 212-438-5054, [email protected]