Corporate Debt Defaults in 2009 Set to Eclipse 2001 Record
Globally, 57 companies (50 public and seven confidentially rated) defaulted in the third quarter of 2009, bringing the year-to-date total to 225, according to Standard & Poor’s.The volume of rated debt affected by defaulters in the third quarter was $126.9 billion, with the U.S. region (the U.S., Bermuda, and the Cayman Islands) accounting for nearly 82%.
The quarterly corporate default rate for speculative-grade-rated entities was 2.1% at the end of third-quarter 2009, compared with 0.77% at the same time in 2008.
On a trailing-12-month basis, the global speculative-grade default rate as of Sept. 30, 2009, reached an 82-month high of 9.58%.
In the first nine months of the year, the number of global defaults exceeds the total for 2008, and it’s on track to eclipse the previous high of 229 in 2001 – Diane Vazza, head of Standard & Poor’s Global Fixed Income Research Group.
For a details, see “Quarterly Default Update And Rating Transitions (Premium).”
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
