S&P marks three defaults for Jan. 31 to Feb. 6; 2013 count up to 10

By Caroline Salls

Pittsburgh, Feb. 11 - Standard & Poor's reported three new defaults for the week of Jan. 31 to Feb. 6, increasing its year-to-date default tally to 10 issuers.

S&P said the first default was a confidentially rated U.S.-based forest products and building materials company, which completed a distressed exchange on Jan. 31. The second default was U.S.-based utility Energy Future Holdings Corp., which also completed a distressed exchange on Jan. 31, and the third default was Italy-based classified directories publisher Seat PagineGialle SpA, which was downgraded to selective default after missing an interest payment on its 2017 bonds.

The ratings agency said it revised the global default tally to include U.S.-based consumer products company School Specialty Inc., which defaulted on Jan. 28 because of a Chapter 11 filing. S&P said School Specialty was not rated at the time of the default.

Of the 10 companies that have defaulted so far this year, S&P said four defaulted as a result of a distressed exchange, three because of missed interest, principal or cash payments, two as a result of bankruptcy filings and one because of a failure to refinance or pay off a revolving credit facility.

S&P said missed payments and bankruptcy filings tied for the top reason for default in 2012, with 23 issuers each. Of the remaining defaults, distressed exchanges accounted for 17, 13 were confidential, and six entities defaulted for various other reasons.

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