Emerging Markets Push The Global Corporate Default Tally To 83, Article Says
By Diane Vazza
& Michelle James
S&P Global Ratings
NEW YORK -- The 2017 global corporate default tally rose to 83 this week after four issuers defaulted, said S&P Global Fixed Income Research today in an article titled "Emerging Markets Push The Global Corporate Default Tally To 83." Three of the defaults were from emerging markets: Venezuela-based Petroleos de Venezuela S.A. and Corporacion Electrica Nacional S.A. and Kazakhstan-based Bank RBK JSC. The remaining default was U.S.-based J.G. Wentworth LLC.
"By country, Venezuela and Kazakhstan lead emerging market defaults in 2017 with two each," said Diane Vazza, head of S&P Global Fixed Income Research.
The U.S. continues to hold the highest share of defaults, with 55 (66.3%), followed by Europe with 12 (14.5%), emerging markets with nine (10.8%), and other developed markets (Australia, Canada, Japan, and New Zealand) with seven (8.4%).
Distressed exchanges have been the predominant reason for default in 2017, accounting for 32 defaults, followed by 22 bankruptcy-related defaults (Chapter 11 or 15), 19 defaults due to missed interest or principal payments, nine confidential defaults, and one default due to regulatory intervention.