2022 Default Tally Inches Past Year-To-Date 2021

Instant Max AI

(S&P Global Ratings, 17.Oct.2022) — After a slow start to the year, the global corporate default tally reached 61 in 2022–one higher than in year-to-date 2021, said S&P Global Ratings in its article published today, “2022 Defaults Inch Past Year-To-Date 2021 Tally As Credit Conditions Worsen.”

We can expect the number of defaults to continue to rise for the remainder of 2022 amid worsening credit conditions, which could erode margins and limit lower-rated companies’ ability to access funding.

There were eight defaults in September, half of which came from Europe, led by U.K.-based cinema operators. So far this year, European defaults are now only one behind the 2021 full-year total.

We estimate that the U.S. and European trailing-12-month-speculative-grade corporate default rates reached 1.6% and 1.4%, respectively, in September 2022.

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