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Tag >> default rate
Apr 16

Default rate way down this year

Posted by Stephen Taub in Standard & Poor'sRiskdefault ratedefaultDealsCash

Stephen Taub

In the past week alone, two companies completed distressed exchange offers--US-based Liz Claiborne and Canada-based Cinram International.

This brings the total number of corporate defaults so far this year to six, including four based in the US, according to Standard & Poor's.

Mar 21

Moody’s encourages Limited to borrow

Posted by Stephen Taub in Moody's Investors Servicedefault ratedefaultdebt-rating agenciesDealscredit-rating agenciesCredit RatingsCash

Stephen Taub

Limited Brands said it will sell $750 million in 10-year notes. The company said it intends to use the proceeds to repurchase $500 million of stock under a new share repurchase program and for general corporate purposes.

The move seemed to surprise some commentators. But investors applauded the move, bidding up the stock by more than 1 percent when it began trading Tuesday morning.

Dec 21

Credit quality rapidly improving

Posted by Stephen Taub in Standard & Poor'sspeculative-gradeRiskleveraged loansdefault rateCreditCash

Stephen Taub

Here are more encouraging signs that the economic recovery continues to gain strength.

Credit quality continues to improve and some indicators stand at two-year highs.

According to Standard & Poor's, the US speculative-grade default rate fell to 3.35 percent in mid-December, down from a peak of 11.4 percent hit in November 2009. In the US, 53 issuers defaulted through November, compared with 185 at the same time in 2009.

Dec 03

Financials elude credit quality gains

Posted by Stephen Taub in upgradesFitch RatingsFitchfinancial institutionsdowngradesdefault ratecorporate default rateCash

Stephen Taub

Credit quality continued to improve in the third quarter...except for financials.

According to a new report from Fitch Ratings, global corporate rating activity year-to-date through the third quarter of 2010 was net positive, with a downgrade to upgrade ratio of 0.9 to 1.

Nov 11

Serial corporate defaulters

Posted by Stephen Taub in Standard & Poor'sRiskdefault ratedefaultCash

Stephen Taub

What are the chances that a company that has defaulted on its debt defaults for a second time?

Not very high.

Oct 19

Credit quality continues to improve

Posted by Stephen Taub in Standard & Poor'sRisknet charge-off ratiodelinquenciesdefault ratedefaultCreditCashCapital

Stephen Taub

Here is further proof the economy in general is improving.

Despite stubbornly high unemployment, Standard & Poor's reported a decline in monthly default rates for all credit lines.

Jun 22

Fitch: Junk default rate below 1 percent

Posted by Stephen Taub in Riskjunk bondshigh yield bondsFitchdefault ratedefaultDeals

Stephen Taub

So much for those dire forecasts calling for massive defaults of junk bonds.

Fitch Ratings says the pace of high yield defaults has slowed so dramatically in 2010 they have even defied the most optimistic forecasts.

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