Bangkok--12 Jul--Standard & Poor's
Two U.S.-based retailers missed payments on their debt instruments this week. This brings the year-to-date 2010 tally of global corporate defaults to 44, said an article published today by Standard & Poor's, titled "Global Corporate Default Update (July 2 - 8, 2010) (Premium)."
By region, the current year-to-date default tallies are 32 in the U.S., two in Europe, four 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 14 defaults, missed interest or principal payments are responsible for 13, Chapter 11 filings account for 11, regulatory directives and receiverships account for one each, and the remaining four defaulted issuers are confidential.
Of the global corporate defaulters in 2010, 41% of issues with available recovery ratings had recovery ratings of '6' (indicating our expectation for negligible recovery of 0%-10%), 13% of the issues had recovery ratings of '5' (modest recovery prospects of 10%-30%), 8% had recovery ratings of '4' (average recovery prospects of 30%-50%), and 21% had recovery ratings of '3' (meaningful recovery prospects of 50%-70%). And for the remaining two rating categories, 15% of the issues had recovery ratings of '2' (substantial recovery prospects of 70%-90%) and 3% 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 Contacts:
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]