S&P: U.S. junk default rate decreased to estimated 2.3% in February

By Caroline Salls

Pittsburgh, March 1 - Standard & Poor's estimates that the U.S. trailing-12-month speculative-grade corporate default rate decreased slightly to 2.3% in February from 2.5% in January, according to a report released Friday.

S&P said the default rate steadily increased during 2012, peaked at 2.96% in September, and has declined since then.

The ratings agency said it expects the default rate to reverse its trend and start to pick up next month and to increase to 3.4% by the end of 2013.

Two entities defaulted in February, compared with 47 defaults during full-year 2012, including entities that were not rated at the time of default and confidentially rated entities, S&P reported.

Specifically, S&P said Revel AC Inc. and RDA Holding Co. defaulted in February.

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