S&P reports 10 global defaulters in week ended May 1, 102 year-to-date

By Caroline Salls

Pittsburgh, May 1 - Standard & Poor's said 10 global corporate issuers defaulted during the week ended May 1, bringing April's tally of global corporate defaults to 40 issuers and the 2009 year-to-date tally to 102 issuers.

By comparison, S&P said the April total is the highest monthly tally since March 2002 when 47 issuers defaulted and the second highest since the agency's series began in 1981.

"The reasons for default this week were mixed, with four missed payments, three distressed exchanges, one regulatory supervision, Chrysler's Chapter 11 filing yesterday, and a confidential default," S&P's Diane Vazza said in Friday news release.

"Missed payments currently are the leading reason for defaults this year, with 35 issuers."

S&P said bankruptcy-related defaults follow with 30 issuers, distressed exchanges with 28 issuers, regulatory supervision with four issuers and various other reasons with five issuers.

Of the week's 10 global corporate defaulters, S&P said five were based in the United States and five were based in the emerging markets, which currently lead defaults by region with counts of 71 and 17, respectively.

S&P said the "other developed region," including Australia, Canada, Japan and New Zealand, follows with eight defaults so far this year, and Europe trails with six defaults.

According to the release, the average recovery rating this week was 4, indicating average recovery prospects, largely because of the number of distressed exchanges, which S&P said tend to have higher recovery prospects than other default reasons like bankruptcies.

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