Prospect News, S&P both report one new default in week ended April 15

By Caroline Salls

Pittsburgh, April 16 - Prospect News and Standard & Poor's each recorded one new default for the week ended April 15.

Prospect News reported a missed interest payment from Northern Rock (Asset Management) plc.

In addition, Prospect News recorded a notice of default and acceleration on Vitro SAB de CV's senior notes due 2013 and a missed interest payment from IIG Funding Ltd. - International Investment Group KSCC, but both of those issuers had previously defaulted.

Meanwhile, S&P's latest default came from U.S. Concrete Inc.

S&P said its year-to-date default tally now stands at 29.

By region, S&P said the current year-to-date default tallies are 21 defaults in the United States, one in Europe, two in the emerging markets and five in the other developed region, which includes Australia, Canada, Japan and New Zealand.

So far this year, the ratings agency said that Chapter 11 filings account for 10 defaults, distressed exchanges account for nine defaults, missed interest or principal payments are responsible for five defaults, regulatory directives and receiverships account for one issuer each, and the remaining three defaulted issuers were confidential.

Of the global corporate defaulters so far in 2010, S&P said:

• 35% of issues with available recovery ratings had recovery ratings of 6, indicating the agency's expectation for negligible recovery of 0% to 10%;

• 15% of the issues had recovery ratings of 5, for modest recovery prospects of 10% to 30%;

• 15% had recovery ratings of 4, for average recovery prospects of 30% to 50%;

• 15% had recovery ratings of 3, for meaningful recovery prospects of 50% to 70%;

• 15% of the issues had recovery ratings of 2, indicating substantial recovery prospects of 70% to 90%; and

• 5% of issues had recovery ratings of 1, or very high recovery prospects of 90% to 100%.

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