Bangkok--30 Aug--Standard & Poor's
Two corporate issuers defaulted this week, bringing the year-to-date 2010 global corporate default tally to 52, said an article published today by Standard & Poor's Global Fixed Income Research.
By region, the current year-to-date default tallies are 38 in the U.S., two in Europe, five in the emerging markets, and seven in the other developed region (Australia, Canada, Japan, and New Zealand), according to the article, titled "Global Corporate Default Update (Aug. 20 - 26, 2010) (Premium)."
So far this year, missed interest or principal payments are responsible for 17 defaults; distressed exchanges account for 16; 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, 42% of issues with available recovery ratings had recovery ratings of '6' (indicating our expectation for negligible recovery of 0% to 10%), 12% of the issues had recovery ratings of '5' (modest recovery prospects of 10% to 30%), 12% had recovery ratings of '4' (average recovery prospects of 30% to 50%), and 15% had recovery ratings of '3' (meaningful recovery prospects of 50% to 70%). And for the remaining two rating categories, 10% of the issues had recovery ratings of '2' (substantial recovery prospects of 70% to 90%) and 10% had recovery ratings of '1' (very high recovery prospects of 90% to 100%).
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