Bangkok--18 Dec--Standard & Poor's
With the effects of the economic downturn lingering, the default cycle has picked up in 2009, said an article published today by Standard & Poor's Global Fixed Income Research.
"The headline U.S. corporate speculative-grade default rate is now at more than 11%, which has led to greater interest in, and perhaps even anxiety regarding, companies' creditworthiness," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "As a result, we are addressing some commonly asked questions regarding corporate default rates."
A few of the issues that the article, titled "Ten Most Frequently Asked Questions About Corporate Defaults," focuses on are:
What constitutes a corporate default;
The types of debt covered in the corporate default statistics;
The way in which corporate default rates are reported;
The methodology used to calculate corporate default rates;
The definition of a trailing 12-month corporate default rate;
How the number of corporate defaults seems to have slowed down recently, but the headline default rate is increasing; and
The way in which distressed exchange offers are included in the corporate default rate calculation.
The report is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. 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