TEXT-S&P: global corporate default tally up to 79 issuers

Fri Dec 14, 2012 11:13am EST

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Dec 14 - U.S.-based Energy Future Holdings Corp. (formerly known as TXU) has
completed a private transaction with some lenders to exchange about $1.6 billion
in unsecured pre-leveraged buyout (LBO) debt and senior unsecured LBO-related
debt. As Standard & Poor's Ratings Services views this transaction as tantamount
to a distressed debt exchange, we have lowered the corporate credit rating on
Energy Future Holdings Corp. to 'SD'. This action raises the global corporate
default tally to 79 issuers so far in 2012, according to Standard & Poor's
report published today titled, ""here
"."

"By region, 45 of the 79 defaulters were based in the U.S., 22 in the emerging 
markets, nine in Europe, and three in the other developed region," said Diane 
Vazza, head of Standard & Poor's Global Fixed Income Research. "In comparison, 
the 2011 total (through Dec. 12, 2011) was 46, with 34 issuers based in the 
U.S., four in Europe, three in the emerging markets, and five in the other 
developed region," she added.

So far this year, missed payments and bankruptcy filings have accounted for 22 
defaults each, distressed exchanges have accounted for 16, and 13 are 
confidential. The remaining six entities have defaulted for various other 
reasons. In 2011, 21 issuers defaulted because of missed interest or principal 
payments, and 13 defaulted because of bankruptcy filings--both of which were 
among the top reasons for defaults in 2010. Distressed exchanges--another top 
reason for default in 2010--followed with 11 defaults in 2011. Of the 
remaining defaults, two issuers failed to finalize refinancing on bank loans, 
two were subject to regulatory action, one had its banking license revoked by 
its country's central bank, one was appointed a receiver, and two were 
confidential.



The report is available to subscribers of RatingsDirect on the Global Credit 
Portal at www.globalcreditportal.com. If you are not a RatingsDirect 
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 
or sending an e-mail to research_request@standardandpoors.com. Ratings 
information can also be found on Standard & Poor's public Web site by using 
the Ratings search box located in the left column at www.standardandpoors.com.
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