Key Takeaways
- Monthly corporate defaults declined to eight in April 2025, despite market volatility and tariff uncertainty. The year-to-date total is 34, compared with 55 over the same period in 2024.
- Seven out of eight defaulters in April were first-time defaulters, with most defaults originating from three sectors: health care, media and entertainment, and chemicals, packaging, and environmental services (CP&ES).
- Distressed exchanges accounted for almost 90% of defaults in April and 68% of the year-to-date total, marking the highest year-to-date proportion since 2008.
- For now, we maintain our base-case projections for 2025, including speculative-grade corporate default rates of 3.50% in the U.S. and 3.75% in Europe. However, prolonged or increasing tariff uncertainty could raise the likelihood of defaults.
S&P Global Ratings' 2025 global corporate default tally declined to eight, from nine in March, after the following defaults in April:
- Canada-based pure-play metallurgical coal company Conuma Resources Ltd.
- Luxembourg-based telecom provider Eos Finco S.a r.l.
- Luxembourg-based plastic packaging producer Kleopatra Holdings 2 S.C.A.
- U.S.-based veterinary practice management company Thrive Pet Healthcare LLC
- U.S.-based media company The E.W. Scripps Company
- U.S.-based manufacturer of plastics, fabrics, and chemicals Ascend Performance Materials Operations LLC
- U.S.-based data analytics provider EagleView Technology Corp.
- U.S.-based acute care hospitals services operator Community Health Systems Inc.
Defaults Declined Despite Market Volatility
Corporate defaults decreased to eight in April, down from nine in March (see chart 1). Year-to-date defaults reached a two-year low and totaled 34, as of April 30, 2025. This is below the five-year average of 42 and constitutes a decline in year-to-date defaults of 21, compared with 2024 and 2023.
The pace of defaults continues to decrease (see chart 2). This is despite the recent tariff-related market volatility, which has raised concerns about growth and higher default rates.
For now, we maintain our base-case projections for 2025, including speculative-grade corporate default rates of 3.50% in the U.S. and 3.75% in Europe. However, prolonged or increasing tariff uncertainty could raise the rates to 6.00% in the U.S. and 6.25% in Europe by December 2025.
Chart 1
Chart 2
Three Sectors Accounted For Most Defaults
Two-thirds of defaults in April stemmed from health care, media and entertainment, and CP&ES, with each sector accounting for two defaults. Five of these defaults happened in the U.S. and one in Luxembourg. Unsustainable capital structures, high leverage, and negative cash flow generation constituted the main reasons for these defaults. Media and entertainment, consumer products, and health care accounted for half of year-to-date defaults (see chart 3).
Chart 3
Distressed Exchanges Increased To Close To 90%
Distressed exchanges caused seven out of eight defaults in April. Notably, seven of the eight companies that defaulted last month were first-time defaulters. Only U.S.-based Community Health Systems Inc., whose default in April reflected its below-par debt repurchases, had defaulted before. This is the fourth time we lowered the rating on the company to 'SD' (selective default) within three years.
Distressed exchanges remain the main cause of defaults. Year to date, they have accounted for 23 defaults or 68% of the total--the highest share since 2008 (see chart 4). Missed payments caused seven defaults, while bankruptcies accounted for four.
Chart 4
Health Care And Media And Entertainment Contributed Most To Defaulted Debt
Monthly defaulted debt reached $5.5 billion in April, similar to the debt volumes in March. This figure represents the lowest defaulted debt volume since January 2024, with 82% originating from the U.S. (see chart 5). Defaulted debt in April was concentrated in four sectors, with health care and media and entertainment leading the way (see chart 6).
Cumulatively, health care has accounted for most defaulted debt since the beginning of the year. The sector total of $7.5 billion includes the addition of $1.64 billion in April from the U.S.-based veterinary practice management company Pathway Vet Alliance LLC, which does business as Thrive Pet Healthcare. The company recently completed a debt-exchange transaction that we view as tantamount to a default.
Chart 5
Chart 6
Table 1
The global default rate stood at 3.6% in March | ||||||
---|---|---|---|---|---|---|
Region | 12-month trailing speculative-grade default rate (%) | Weakest links | ||||
U.S. | 4.3 | 151 | ||||
Emerging markets | 0.9 | 10 | ||||
Europe | 3.8 | 45 | ||||
Other developed | 2.3 | 9 | ||||
Global | 3.6 | 215 | ||||
Trailing 12-month speculative-grade default rates are for the period from March 31, 2024, to March 31, 2025, except for the U.S. and Europe. For these two regions, they are for the period from April 30, 2024, to April 30, 2025, preliminary, and subject to change. Weakest link data as of March 31, 2025. Other developed includes Australia, Canada, Japan, and New Zealand. Default counts may include confidentially rated issuers. Sources: S&P Global Ratings Credit Research, S&P Global Market Intelligence's CreditPro. |
Table 2
The 2025 global corporate default tally stands at 34 | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Date | Parent company | Country | Subsector | To | From | Reason | ||||||||
Jan. 8, 2025 |
City Brewing Co. LLC |
U.S. | Consumer products | SD | B- | Missed payments | ||||||||
Jan. 16, 2025 |
Blue Ribbon LLC |
U.S. | Consumer products | SD | CCC- | Distressed exchange | ||||||||
Jan. 16, 2025 |
JOANN Inc. |
U.S. | Retail/restaurants | D | CCC | Bankruptcy | ||||||||
Jan. 16, 2025 |
Packers Holdings LLC |
U.S. | Consumer products | SD | CCC- | Distressed exchange | ||||||||
Jan. 17, 2025 |
Aimbridge Acquisition Co. Inc. |
U.S. | Media and entertainment | D | CCC | Missed payments | ||||||||
Jan. 17, 2025 |
Trinseo PLC |
Ireland | Chemicals, packaging, and environmental services | SD | CC | Distressed exchange | ||||||||
Jan. 23, 2025 |
Physician Partners LLC |
U.S. | Health care | SD | CCC+ | Distressed exchange | ||||||||
Jan. 28, 2025 |
Intrum AB (publ) |
Sweden | Finance companies | SD | CC | Missed payments | ||||||||
Jan. 29, 2025 |
Azul S.A. |
Brazil | Transportation | SD | CC | Distressed exchange | ||||||||
Jan. 31, 2025 |
MultiPlan Inc. |
U.S. | Health care | SD | CC | Distressed exchange | ||||||||
Feb. 4, 2025 |
Selecta Group B.V. |
Netherlands | Consumer products | SD | CCC- | Missed payments | ||||||||
Feb. 20, 2025 |
Altisource Portfolio Solutions S.A. |
Luxembourg | Finance companies | SD | CC | Distressed exchange | ||||||||
Feb. 20, 2025 |
Hurtigruten Newco AS |
Norway | Media and entertainment | D | CC | Distressed exchange | ||||||||
Feb. 21, 2025 |
Confluence Technologies, Inc. |
U.S. | Media and entertainment | SD | CCC+ | Distressed exchange | ||||||||
Feb. 21, 2025 |
Stitch Acquisition Corp. |
U.S. | Consumer products | SD | CCC | Distressed exchange | ||||||||
Feb. 24, 2025 |
OT Merger Corp. |
U.S. | Capital goods | SD | CCC+ | Distressed exchange | ||||||||
Feb. 25, 2025 |
Thames Water Utilities Ltd. |
U.K. | Utilities | D | CC | Distressed exchange | ||||||||
March 3, 2025 |
Bright Bidco B.V. |
Netherlands | Automotive | SD | CCC+ | Missed payments | ||||||||
March 3, 2025 |
Poseidon Investment Intermediate L.P. |
U.S. | Chemicals, packaging, and environmental services | SD | CCC | Distressed exchange | ||||||||
March 7, 2025 |
Alvogen Pharma US Inc. |
U.S. | Health care | SD | CCC+ | Distressed exchange | ||||||||
March 10, 2025 |
Astra Acquisition Corp. |
U.S. | High technology | SD | CCC | Missed payments | ||||||||
March 11, 2025 |
Runner Buyer Inc. |
U.S. | Retail/restaurants | D | CCC | Missed payments | ||||||||
March 12, 2025 |
Mitel Networks (International) Ltd. |
U.K. | High technology | D | CCC | Bankruptcy | ||||||||
March 14, 2025 |
EmployBridge Holding Co. |
U.S. | Media and entertainment | SD | CC | Distressed exchange | ||||||||
March 21, 2025 |
Mountain Province Diamonds Inc. |
Canada | Metals, mining, and steel | SD | CCC | Distressed exchange | ||||||||
March 31, 2025 |
HoA Restaurant Group LLC |
U.S. | Retail/restaurants | D | NR | Bankruptcy | ||||||||
April 3, 2025 |
Pathway Vet Alliance LLC |
U.S. | Health care | SD | CCC+ | Distressed exchange | ||||||||
April 11, 2025 |
E.W. Scripps Co. (The) |
U.S. | Media and entertainment | SD | CC | Distressed exchange | ||||||||
April 15, 2025 |
Conuma Resources Ltd. |
Canada | Metals, mining, and steel | SD | CCC+ | Distressed exchange | ||||||||
April 22, 2025 |
Ascend Performance Materials Operations LLC |
U.S. | Chemicals, packaging, and environmental services | D | CCC+ | Bankruptcy | ||||||||
April 25, 2025 |
EagleView Technology Corp. |
U.S. | Media and entertainment | SD | CCC | Distressed exchange | ||||||||
April 28, 2025 |
Eos Finco S.a r.l. |
Luxembourg | Consumer products | SD | CCC+ | Distressed exchange | ||||||||
April 29, 2025 |
Kleopatra Holdings 2 S.C.A. |
Luxembourg | Chemicals, packaging, and environmental services | SD | CC | Distressed exchange | ||||||||
April 30, 2025 |
Community Health Systems Inc. |
U.S. | Health care | SD | CCC+ | Distressed exchange | ||||||||
Data as of April 30, 2025. NR--Not rated. SD--Selective default. Sources: S&P Global Ratings Credit Research & Insights, S&P Global Market Intelligence's CreditPro®. |
Related Research
- Community Health Systems Inc. Downgraded To 'SD' On Debt Repurchase, April 30, 2025
- Kleopatra Holdings 2 S.C.A. Downgraded To 'SD' On Completion Of Distressed Exchange; Unsecured Notes Downgraded To 'D', April 29, 2025
- Eos Finco (Netceed) Downgraded To 'SD' From 'CCC+' On Agreed Deferred Interest And Amortization Payments; Term Loan B To 'D', April 28, 2025
- EagleView Technology Corp. Downgraded To 'SD' From 'CCC' On Distressed Debt Exchange, Issue Ratings Lowered To 'D', April 26, 2025
- Corporate Default Forecasts Maintained, But Risks Are Rising, April 25, 2025
- Ascend Performance Materials Operations LLC Ratings Lowered To 'D' From 'CCC+' On Chapter 11, April 23, 2025
- Conuma Resources Ltd. Downgraded To 'SD' Following Distressed Restructuring Transaction; Senior Notes Downgraded To 'D', April 16, 2025
- Trade Tensions Could Reverse Decline In Corporate Defaults, April 16, 2025
- The E.W. Scripps Co. Rating Lowered To 'SD' From 'CC' On Debt Restructuring, April 12, 2025
- Global Credit Conditions Special Update: Ongoing Reshuffling, April 11, 2025
- Pathway Vet Alliance LLC Downgraded To 'SD' From 'CCC+' Following Distressed Debt Transaction, April 3, 2025
- The European Speculative-Grade Default Rate Could Level Out At 3.75% By December 2025, Feb. 21, 2025
- The U.S. Speculative-Grade Corporate Default Rate Could Fall To 3.5% By December 2025, Feb. 20, 2025
Default Studies
More analyses and statistics are available in our annual default studies, published on RatingsDirect.
Corporate (financial and non-financial)
- 2024 Annual Global Financial Services Default And Rating Transition Study
- 2024 Annual Global Corporate Default And Rating Transition Study
- 2024 Annual U.S. Corporate Default And Rating Transition Study
- 2023 United Kingdom Corporate Default And Rating Transition Study
- 2023 Annual European Corporate Default And Rating Transition Study
- 2024 Annual Japanese Corporate And Public Finance Default And Rating Transition Study
- 2023 Annual Asia Corporate Default And Rating Transition Study
- 2023 Annual Taiwan Ratings Corp. Corporate Default And Rating Transition Study
- 2023 Annual Emerging And Frontier Markets Corporate Default And Rating Transition Study
- 2023 Annual Greater China Corporate Default And Rating Transition Study
- 2023 Short-Term Corporate Default And Rating Transition Study
Structured finance
- 2024 Annual Global Structured Finance Default And Rating Transition Study
- 2024 Annual Japanese Structured Finance Default And Rating Transition Study
- 2023 Annual European Structured Finance Default And Rating Transition Study
- 2023 Annual Taiwan Ratings Corp. Structured Finance Default And Rating Transition Study
- 2023 Annual Mexican Structured Finance Default And Rating Transition Study
- 2023 Annual Global Leveraged Loan CLO Default And Rating Transition Study
Public finance
- 2024 Annual U.S. Public Finance Default And Rating Transition Study
- 2023 Annual International Public Finance Default And Rating Transition Study
- 2023 Annual Mexican National Scale Corporate And Public Finance Default And Rating Transition Study
Sovereign and international public finance
This report does not constitute a rating action.
Credit Market Research: | Ekaterina Tolstova, Frankfurt +49 173 6591385; ekaterina.tolstova@spglobal.com |
Nicole Serino, New York + 1 (212) 438 1396; nicole.serino@spglobal.com | |
Research Contributor: | Vaishali Singh, CRISIL Global Analytical Center, an S&P affiliate, Mumbai |
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