Bangkok--22 Mar--Standard & Poor's,
Two global corporate issuers defaulted this week, raising the 2010 year-to-date total to 21 defaults, said an article published today by Standard & Poor's, titled "Global Corporate Default Update (March 12 - 18, 2010) (Premium)."
By region, the current year-to-date default tallies are 16 in the U.S., one in Europe, two in the emerging markets, and two in the other developed region (Australia, Canada, Japan, and New Zealand).
So far this year, distressed exchanges and Chapter 11 filings account for seven defaults each, missed interest or principal payments are responsible for four defaults, and the remaining three defaulted issuers are confidential.
Of the global corporate defaulters in 2010, 33% of issues with available recovery ratings had recovery ratings of '6' (indicating our expectation for negligible recovery of 0%-10%), 20% of the issues had recovery ratings of '5' (modest recovery prospects of 10%-30%), 20% had recovery ratings of '4' (average recovery prospects of 30%-50%), and 20% had recovery ratings of '3' (meaningful recovery prospects of 50%-70%). And for the remaining two rating categories, none of the issues had recovery ratings of '2' (substantial recovery prospects of 70%-90%) and 7% of issues had recovery ratings of '1' (very high recovery prospects of 90%-100%).
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