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

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