Bangkok--17 Mar--Standard & Poor's
The number of global weakest links continues to decline from the record high of 300 reached in April 2009, said an article published today by Standard & Poor's, titled "Global Bond Markets' Weakest Links And Monthly Default Rates (Premium)."
Weakest links are issuers rated 'B-' and lower with a negative outlook or ratings on CreditWatch negative.
"As of March 10, 2010, we identified 203 weakest links, 10 fewer than this past month and down markedly from 298 one year ago," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "The 203 weakest links have combined rated debt worth $190.75 billion."
So far in 2010 (through March 11), 19 issuers have defaulted, affecting debt worth $8.01 billion. After increasing for 19 months, the 12-month-trailing global corporate speculative-grade default rate declined in February for the third consecutive month to 8.65%, from 9.24% in January 2010. Regionally, the U.S. speculative-grade corporate default rate also decreased for the third consecutive time, to 10.38% in February from 10.87% in January. In Europe, the default rate declined to 7.73% in February from 8.63% in January, while the emerging markets default rate decreased to 4.31% from 5.19%.
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 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 Contact:
Diane Vazza, New York (1) 212-438-2760