S&P reports five new global corporate defaults for April 7 to April 13

By Caroline Salls

Pittsburgh, April 18 – Standard & Poor’s global corporate default tally climbed to 46 issuers so far in 2016 with the addition of five defaulters for the week of April 7 to April 13, according to a report released Monday.

Specifically, S&P said the latest defaults included the following:

• S&P lowered its issuer rating on UkrLandFarming plc to SD from CC after the issuer defaulted on some of its credit facilities, including an interest payment due on its $500 million notes;

• S&P lowered its corporate credit rating on Government Development Bank for Puerto Rico to SD from CC after the bank announced that Puerto Rico’s “emergency period” is preventing depositors from withdrawing funds from the bank;

• S&P lowered its corporate credit rating on Vertellus Specialties Inc. to D from CCC after the issuer failed to make its interest payments;

• S&P downgraded Cliffs Natural Resources Inc. to SD from CC after it completed a debt exchange offer that the agency views as a distressed exchange; and

• S&P lowered its corporate credit rating on Norske Skogindustrier ASA to SD from CC following its completed debt exchange offer, which the agency feels might lead to a conventional default.

Of the 46 defaulting issuers so far in 2016, S&P said 21 defaulted because of missed principal and/or interest payments, eight because of distressed exchanges, five after bankruptcy filings, four because of debt exchanges, two because of de facto restructurings and one each because of deferred interest payments, regulatory intervention and a moratorium. The remaining three defaults were confidential.

So far in 2016, S&P said 37 of the defaulting issuers are based in the United States, seven in emerging markets and one each in Europe and the other developed nations, which includes Australia, Canada, Japan and New Zealand.

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