S&P: 60% global debt defaulter companies American

S&P: 60% global debt defaulter companies American

About 60 percent of this year’s global defaults have come from U.S. borrowers, up from 55 percent a year ago. More U.S. companies have d... 9:20 AM

About 60 percent of this year’s global defaults have come from U.S. borrowers, up from 55 percent a year ago. More U.S. companies have defaulted on their debt this year than companies from other country or region, S&P analysts say in a report published Dec 24.



This is the highest number of defaults since 2009, when 242 companies defaulted for the same period. Even last year, U.S. had 55 per cent share of global debt defaults.

Companies from emerging markets were the second-largest defaulters – having 23 per cent of the pool – it is a smaller share than last year, S&P data says.

Plummeting oil prices and speculation about how the Federal Reserve’s plan to tighten monetary policy would affect corporate borrowing costs has made companies more vulnerable: “he current crop of U.S. speculative-grade issuers appears fragile, and particularly susceptible to any sudden, or unanticipated shock,” the report remarked.
FE