S&P reports two new global defaults for week of April 12 to April 18

By Caroline Salls

Pittsburgh, April 23 - Standard & Poor's marked two new global corporate defaults for the week of April 12 to April 18, raising its year-to-date default tally to 28 issuers, according to a report released Monday.

S&P said it lowered its ratings on Reddy Ice Holdings Inc. to D on April 12 after the company announced that it filed for Chapter 11 bankruptcy and secured commitments for $70 million in debtor-in-possession financing from Macquarie Bank Ltd.

Meanwhile, the ratings agency said it lowered its long-term and short-term issuer credit ratings on Residential Capital LLC to selective default on April 18.

S&P said ResCap, the troubled mortgage subsidiary of Ally Financial Inc., failed to make a scheduled interest payment on its senior unsecured notes due April 2013, opting instead to use the 30-day grace period that the debt's indenture allows.

Of the total defaulters this year, S&P said 18 were based in the United States, five in the emerging markets, three in Europe and two in the other developed region, which includes Australia, Canada, Japan and New Zealand.

So far this year, missed payments accounted for 11 defaults, bankruptcy filings accounted for six, distressed exchanges were responsible for four, and four defaulters were confidential.

Of the remaining defaults, one was the result of a notice of acceleration by the issuer's lender, one stemmed from the company's placement under regulatory supervision, and the last resulted from a judicial organization filing.

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