Bangkok--8 Sep--Standard & Poor's Although aggregate default rates in the U.S. are still below long-term levels, a closer look by industry reveals that five sectors have already exceeded their long-term averages. The credit correction is in full swing. The number of corporate defaults recorded in the U.S. year to date is 50, more than three times as large as the same period one year ago, According to Standard & Poor's U.S. Credit Comment: Stressed Sectors Pierce Long-Term Default Averages (Premium). Expressed as a share of total rated issuers, the U.S. recorded a default rate of 1.38% in the 12 months ending in August. If only speculative-grade rated issuers are considered, the default rate increases to 2.38%. "Notwithstanding the substantial rise in the defaulter count, we continue to view defaults at an early phase of correction, and anticipate that the default cycle has much longer to run before it reaches its peak," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. Indeed, the historical dynamics of default rates suggest that the next peak is not likely to appear before mid-2009 at the earliest. This is based on expectations by our economics team that real GDP will trough either late this year or in the first quarter of 2009, and the historical pattern of defaults generally lagging the economic cycle. This article is part of our premium Global Fixed Income Research content, which is available to premium subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. 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 Contacts: Diane Vazza, New York (1) 212-438-2760