Bangkok--14 Jun--Standard & Poor's
Two global corporate issuers defaulted this week, raising the year-to-date 2010 tally of global corporate defaults to 38, said an article published today by Standard & Poor's, titled "Global Corporate Default Update (June 4 - 10, 2010) (Premium)."
By region, the current year-to-date default tallies are 27 in the U.S., two in Europe, three in the emerging markets, and six in the other developed region (Australia, Canada, Japan, and New Zealand).
So far this year, distressed exchanges account for 13 defaults, Chapter 11 filings account for 10, missed interest or principal payments are responsible for nine, regulatory directives and receiverships are responsible for one each, and the remaining four defaulted issuers are confidential.
Of the global corporate defaulters in 2010, 39% of issues with available recovery ratings had recovery ratings of '6' (indicating our expectation for negligible recovery of 0%-10%), 12% of the issues had recovery ratings of '5' (modest recovery prospects of 10%-30%), 9% had recovery ratings of '4' (average recovery prospects of 30%-50%), and 24% had recovery ratings of '3' (meaningful recovery prospects of 50%-70%). And for the remaining two rating categories, 12% of the issues had recovery ratings of '2' (substantial recovery prospects of 70%-90%) and 3% of issues had recovery ratings of '1' (very high recovery prospects of 90%-100%).
This article is part of our premium Global Fixed Income Research content, which is available to premium subscribers to RatingsDirect on the Global Credit Portal at www.globalcreditportal.com and to RatingsDirect at www.ratingsdirect.com. 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
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_
[email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]