Bangkok--6 Aug--Standard & Poor's
The number of corporate defaults in 2009 continued the expansion seen at the end of 2008, with 10 more U.S. defaults in July, said an article published today by Standard & Poor's, titled "U.S. Credit Metrics Monthly: Default Rate Reaches 9.4% In July (Premium)." This brings the year-to-date total to 129.
The defaults in July are attributable to six nonfinancial sectors.
"The preliminary estimate for the U.S. 12-month-trailing speculative-grade default rate in July is 9.38%, which is subject to revision," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "This is up nominally from the 9.25% in June, though much higher than the 2.5% reported in July 2008."
We expect the speculative-grade default rate to escalate to a mean forecast of 13.9% by June 2010, but it could reach as high as 18% if economic conditions are worse than expected.
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Media Contact:
Mimi Barker, New York (1) 212-438-5054, [email protected]
Analyst Contacts:
Diane Vazza, New York (1) 212-438-2760