June 8, 2020 / 3:42 PM / a month ago

European corporate default rate to spike: S&P Global

FILE PHOTO: The skyline with its financial district is photographed in Frankfurt, Germany, March 24, 2020, as the spread of the coronavirus disease (COVID-19) continues. REUTERS/Kai Pfaffenbach

LONDON (Reuters) - Europe’s speculative-grade corporate default rate is expected to more than treble to 8.5% by next March rating S&P Global said on Monday, though in a more pessimistic scenario it could leap as far as 11.5%.

S&P said its baseline 8.5% forecast would see at least 62 speculative-grade companies default. A more optimistic 3.5% default rate would see 25 defaults, whereas the pessimistic 11.5% outcome would see 84 defaults.

“Expansive monetary and fiscal support could lessen defaults over the near term, but much assistance to date adds to existing debt piles at a time when basic revenue is lacking,” S&P said in a report.

Reporting by Marc Jones; editing by Simon Jessop

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below