Bangkok--16 Aug--Standard & Poor's
The year-to-date 2010 tally of global corporate defaults remains unchanged at 48 after no issuers defaulted this week, said an article published today by Standard & Poor's, titled "Global Corporate Default Update (Aug. 6 - 12, 2010) (Premium)."
By region, the current year-to-date default tallies are 35 in the U.S., two in Europe, five 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 15 defaults; missed interest or principal payments are responsible for 14; Chapter 11 filings account for 12; regulatory directives, receiverships, and debt reorganization are responsible for one each; and the remaining four defaulted issuers are confidential.
Of the global corporate defaulters in 2010, 38% of issues with available recovery ratings had recovery ratings of '6' (indicating our expectation for negligible recovery of 0% to 10%), 15% of the issues had recovery ratings of '5' (modest recovery prospects of 10% to 30%), 13% had recovery ratings of '4' (average recovery prospects of 30% to 50%), and 19% had recovery ratings of '3' (meaningful recovery prospects of 50% to 70%). And for the remaining two rating categories, 13% of the issues had recovery ratings of '2' (substantial recovery prospects of 70% to 90%) and 4% had recovery ratings of '1' (very high recovery prospects of 90% to 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