S&P: estimated November U.S. default rate holds steady in 11.1% range

By Caroline Salls

Pittsburgh, Dec. 2 - Standard & Poor's said the trailing 12-month U.S. speculative grade default rate held steady at an estimated 11.1% in November after recent economic news offered some glimmers of hope.

More specifically, S&P said preliminary estimates for the November U.S. rate is 11.12%, up marginally from 11.11% in October.

"The stabilization in the default rate comes as fewer defaults are being recorded," S&P's Diane Vazza said in a news release.

"However, the pool of high-yield issuers is also shrinking, which is keeping the default rate elevated."

The ratings agency said eight companies defaulted in November, bringing the year-to-date total to 184.

The November defaults are attributable to six non-financial sectors and two financial sectors, according to the release.

S&P said it expects the speculative-grade default rate to decline to a mean forecast of 6.9% by September 2010, but it could reach 9.9% if economic conditions are worse than expected.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.