Corporate Defaults Exceed 2007 Total
Borrowers have defaulted 28 times on $18.9 billion of debt, compared with 22 last year and 30 in all of 2006.
Diane Vazza, head of S&P global fixed-income research group, said in the report:
"The U.S. speculative-grade default rate will rise to 4.7% in the next 12 months from a 25- year low of 0.97% at the end of 2007.
A material risk remains that defaults could be significantly more pronounced and severe,
especially if the recession would be deeper and longer than expected.
Under a pessimistic scenario, the default rate would reach 8.5%, or about 136 actual defaults, in 12 months."
US companies were responsible for all but one of this years defaults. Hattip to Bloomberg
Diane Vazza, head of S&P global fixed-income research group, said in the report:
"The U.S. speculative-grade default rate will rise to 4.7% in the next 12 months from a 25- year low of 0.97% at the end of 2007.
A material risk remains that defaults could be significantly more pronounced and severe,
especially if the recession would be deeper and longer than expected.
Under a pessimistic scenario, the default rate would reach 8.5%, or about 136 actual defaults, in 12 months."
US companies were responsible for all but one of this years defaults. Hattip to Bloomberg
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