'over 100 companies default'

Discussion in 'Economics' started by Wallace, Dec 17, 2008.

  1. "Over 100 companies globally have defaulted on their debt this year,
    affecting $302 billion worth of securities but that figure could rise as
    nearly 900 issuers are poised for credit downgrades, Standard & Poor's
    said on Monday.
    "The rise in defaults in 2008 is in sharp contrast with trends in prior
    years, when only 22 defaults were recorded in all of 2007 and 30 in
    2006," said Diane Vazza, head of S&P's global fixed-income research
    group. The credit bubble appears to have been concentrated in the US.
    Of the 108 defaults this year, 86 are from the United States, 7 from
    Europe, 5 each from Asia and Canada, 3 from Latin America, and 2
    from Russia.
    Furthermore, there are 897 issuers poised for downgrades, with the
    US topping the list of potential bond downgrades, Vazza said.
    The U.S. faces 531, or 59% entities at risk for downgrades, but that
    concentration partly reflects the larger rated population in the U.S.
    And Europe holds the next position, with 173, or 19% entities at risk
    for downgrades, she added.
    (Reporting by Jennifer Ablan, editing by Diane Craft)"