Bangkok--18 Jun--Standard & Poor's Through June 11, 2008, 33 companies have defaulted, affecting debt worth $38.3 billion, said an article published yesterday by Standard & Poor's. The article, which is titled "Global Bond Markets' Weakest Links And Monthly Default Rates (Premium)," said that this already surpassed the 22 defaults recorded in all of 2007 and 30 defaults in 2006. Of the 33 defaults, 32 are domiciled in the U.S., and one is from Canada. The U.S. also leads in the number of weakest links--entities that are closest to the default threshold--with 117 of the 140 entities (84%). The 12-month-trailing global corporate speculative-grade bond default rate increased to a 31-month high of 1.45% in May from 1.29% in April. The default rate has remained below its long-term (1981-2007) average of 4.35% for 52 consecutive months. By region, the speculative-grade default rate increased to 1.89% in the U.S. and held steady at 0.50% in Europe and 0.17% in the emerging markets. "Our mean baseline U.S. speculative-grade default rate forecast is unchanged at 4.7%," noted Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "This is a sharp increase from a 25-year low of 0.97% recorded at the end of 2007." To reach 4.7%, 74 entities must default in the next 12 months. The increase in defaults reflects the unfolding recessionary conditions, weaker earnings prospects, and continued financial pressures that will increase lending constraints. "Continued financial-market volatility, tightening credit conditions, protracted housing correction, dollar weakness, and the impact high energy prices contribute to substantial variability in the default forecast," Ms. Vazza added. "A material risk remains that defaults could be significantly more pronounced and severe, especially if the recession would be deeper and longer than expected." RatingsDirect is the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. The standard version of this article is part of our standard Global Fixed Income Research content. The premium version contains expanded analysis of the article's most significant points, typically broken out by sector and region. Also in the premium version are in-depth charts and tables, the underlying data of which are available for download. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representative provided. Media Contact: Mimi Barker, New York (1) 212-438-5054, [email protected] Analyst Contact: Diane Vazza, New York (1) 212-438-2760 Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com. Key Contacts: Americas Media Relations: (1) 212-438-6667 media_ [email protected] Americas Customer Service: (1) 212-438-7280 [email protected]