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Announcement:

Moody's: Global Spec-Grade Corporate Default Rate Edges Higher in April

Global Credit Research - 08 May 2013

New York, May 08, 2013 -- Moody's trailing 12-month global speculative-grade default rate came in at 2.6% in April, up from a revised rate of 2.5% in March and close to its year-ago forecast of 2.8%, Moody's Investors Service says in its monthly default report. At this time last year, the global default rate stood at 2.7%.

Moody's "April Default Report" is now available, as are Moody's other default research reports, in the Ratings Analytics section of Moodys.com.

"Corporate defaults continue to be very stable and track the modest pace we have expected," notes Albert Metz, Managing Director of Credit Policy Research.

Four Moody's-rated corporate debt issuers defaulted last month, and for the year to date the number is 25, with 15 from the US, eight from Europe and two from Latin America.

In the US, the speculative-grade default rate rose slightly, to 3.1% in April from 3.0% (revised) in March. The US rate was 3.0% at end-April last year. In Europe, the rate edged lower, to 2.0% in April from 2.1% (revised) in March. The European rate ended April 2012 at 3.4%.

Based on its forecasting model, Moody's now expects the global speculative-grade default rate to finish 2013 at 2.9% and to edge lower thereafter, to end April 2014 at 2.5%.

Across industries, Moody's continues to expect default rates to be highest in the Media: Advertising, Printing & Publishing sector in the US, and the Hotel, Gaming & Leisure sector in Europe.

By dollar volume, the global speculative-grade bond default rate came in at 1.4% in April, unchanged from the prior month's revised level. At this time last year, the rate was 1.7%.

In the US, the dollar-weighted speculative-grade bond default rate also held steady, at 1.3% from March to April. The comparable rate was 1.6% in April 2012.

In Europe, the dollar-weighted speculative-grade bond default rate finished at 1.6% in April, also unchanged from the prior month's revised reading. The European rate stood at 2.3% at the end of April last year.

Moody's global distressed index fell to 8.0% in April from 8.8% in March. A year ago, the index was at 17.0%.

In the leveraged-loan market, no Moody's-rated loans defaulted in April. Moody's trailing 12-month US leveraged loan default rate finished April at 2.9%, unchanged from the prior month. A year ago, the loan default rate stood at 2.0%.

Moody's research subscribers can access this report at http://www.moodys.com/research/Monthly-Default-Report-April-2013--PBC_153686.

***

NOTE TO JOURNALISTS ONLY: For more information, please call one of our global press information hotlines: New York +1-212-553-0376, London +44-20-7772-5456, Tokyo +813-5408-4110, Hong Kong +852-3758-1350, Sydney +61-2-9270-8141, Mexico City 001-888-779-5833, São Paulo 0800-891-2518, or Buenos Aires 0800-666-3506. You can also email us at mediarelations@moodys.com or visit our web site at www.moodys.com.

Sharon Ou
Vice President - Senior Analyst
Credit Policy
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Albert Metz
MD - Credit Policy Research
Credit Policy
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's: Global Spec-Grade Corporate Default Rate Edges Higher in April
No Related Data.

 

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