S&P U.S. default rate falls to estimated 6% in June despite struggles

By Caroline Salls

Pittsburgh, July 2 - Standard & Poor's said the trailing 12-month U.S. speculative-grade default rate fell to an estimated 6% in June despite global risk aversion making a comeback as a result of the sovereign debt struggles in Europe.

According to an S&P news release, the estimated June rate is down from 6.85% in May and a high of 11.3% in November 2009.

However, the default rate is still above its long-term average of 4.6% and remains a lagging indicator to the overall economy.

S&P said credit metrics in the United States are strengthening somewhat, though still at a pace indicative of caution among market participants.

"In June, seven companies defaulted in the U.S., compared with 24 at the same time in 2009," S&P's Diane Vazza said in the release.

"All seven companies were publicly rated, and four were in the leisure time/media sector."

The June default rate estimate is subject to revision, according to the release.

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