20 Oct 2020|Moody's Investors Service
China's slower economic growth, companies' weak liquidity and investors' heightened risk aversion will be the main factors driving onshore and offshore defaults during the coming 12 months. Financially weak private-sector companies are more vulnerable than state-owned companies.
09 Oct 2020|Moody's Investors Service
The trailing 12-month global speculative-grade corporate default rate remained at 6.4% at the end of September, unchanged from the prior month. Our Credit Transition Model forecasts that the rate will peak at 8.4% in March 2021 before dropping back to 6.8% by September 2021, still well above the long-term average of 4.1%.
09 Sep 2020|Moody's Investors Service
The trailing 12-month global speculative-grade default rate edged up to 6.4% at the end of August, from 6.2% in July and 2.4% in August 2019. The latest reading marked the highest default rate in a decade, reflecting the credit impact of the coronavirus-induced recession
26 Aug 2020|Moody's Investors Service
If speculative-grade corporate defaults in the current downturn follow a similar path to those of prior default cycles, the trailing 12-month global default rate would likely climb to the 9.7%-13.3% range in February 2021, up from 6.1% in July and 3.6% in March.
13 Aug 2020|Moody's Investors Service
Half of the 42 sovereign bond defaults since 1997 occurred since 2010. Political or institutional weaknesses caused 36% of the defaults, debt burdens caused 33%, chronic economic stagnation caused 17% and banking crises caused 14%. The coronavirus pandemic directly triggered two sovereign defaults.