S&P marks 1 default for week ended Sept. 17; Prospect News records 1 missed payment, 3 bankruptcies

By Caroline Salls

Pittsburgh, Sept. 18 - Standard & Poor's reported one global corporate default for the week ended Sept. 17, bringing the year-to-date tally to 215, according to a news release.

S&P said the defaulter, which was based in the United States, was Stallion Oilfield Services Ltd.

Stallion's default stemmed from a missed interest payment, bringing the missed payment count to 74 for 2009.

Meanwhile, Prospect News recorded Stallion's missed interest payment, as well as three new bankruptcy filings for the week. The bankruptcy filings were made by Triple Crown Media Inc., Barzel Industries Inc. and CIB Marine Bancshares, Inc.

S&P said its year-to-date distressed exchange count is 74 issuers, leaving it tied with missed payments for the leading reason for defaults in 2009. The year-to-day bankruptcy filing default tally stands at 54 issuers.

By region, S&P said 155 issuers have defaulted this year in the United States, 13 issuers in Europe, 34 issuers in the emerging markets and 13 issuers in the other-developed region, which includes Australia, Canada, Japan and New Zealand.

Of the global corporate defaulters so far this year, S&P said:

• 40% of issues with available recovery ratings had recovery ratings of 6, indicating the ratings agency's expectation for negligible recovery of 0% to 10%;

• 16% of issues had recovery ratings of 5, for modest recovery prospects of 10% to 30%;

• 12% had recovery ratings of 4, or average recovery prospects of 30% to 50%;

• 11% had recovery ratings of 3, for meaningful recovery prospects of 50% to 70%;

• 11% of issues had recovery ratings of 2, indicating substantial recovery prospects of 70% to 90%; and

• 10% of issues had recovery ratings of 1, or very high recovery prospects of 90% to 100%.

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