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Moody’s predicts a sharp increase in corporate defaults in the world

Moody's пророчит резкий рост корпоративных дефолтов в мире

International rating Agency Moody’s expects the trend of last year, when the number of defaults among corporate issuers in the world has almost doubled, will continue.

According to Moody’s projections, the number of defaults this year will grow by more than 30% – to the maximum since the crisis of 2008-2009, according to “Finmarket”.

The Agency forecasts that the share of defaults among issuers this year, will rise to 2.1% from 1.7% in 2015. This implies 138 events of default that will be one-third higher than last year.

“Consistently low quotations of raw materials, the economic slowdown and the widening of spreads of high-yield bonds will increase in defaults in 2016, says senior Moody’s credit analyst Sharon OU. – Prospects of further rises in interest rates by the Federal reserve this year may also push investors to greater risk avoidance”.

Just last year there were 109 defaults against 55 in 2014, their volume increased to $97.9 billion with a $71,4 billion the largest events of default – Caesars Entertaiment Corp. ($20.5 billion), Alpha Natural Resources ($4.5 billion), and Samson Investment Co. ($4.2 billion).

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