Bangkok--22 Apr--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)."
As of April 14, 2010, we identified 177 weakest links, 26 fewer than this past month and down markedly from an all-time high of 300 one year ago. The 177 weakest links have combined rated debt worth $184.42 billion.
Weakest links are issuers rated 'B-' and lower with a negative outlook or ratings on CreditWatch negative.
"So far in 2010, through April 14, 30 issuers have defaulted, affecting debt worth $18.56 billion," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. Of these, 21 are from the U.S., three are from Canada, two are from New Zealand, and one each is from Argentina, Australia, Ireland, and Bahrain.
"The 12-month-trailing global corporate speculative-grade default rate declined in March for the fourth consecutive month, to 8.32% from 8.77% in February," said Ms. Vazza.
The U.S. leads in the number of weakest links, with 122 of the 177 entities, or 69%. By sector, media and entertainment; chemicals, packaging, and environmental services; banks; consumer products; and retail and restaurants were the most vulnerable, with the highest concentrations of weakest links.
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