S&P records two new global defaults for week of June 21 to June 27

By Caroline Salls

Pittsburgh, July 2 - Standard & Poor's said that two global corporate issuers completed subpar debt transactions in the week ending June 27, raising the agency's 2012 global corporate default tally to 39, according to a news release.

Specifically, S&P said it lowered its corporate credit rating on Luxembourg-based Kloeckner Holdings SCA to selective default from CC after the company's German subsidiary Kleopatra Lux 1 Sarl implemented a debt restructuring package in which the total value that the junior lenders received was less than par.

In addition, S&P said Bermuda-based media company Central European Media Enterprises Ltd. also saw its corporate credit rating lowered to selective default after it completed a repurchase of its 2014 notes at a price below face value.

By region, the ratings agency said 23 of the 39 defaulters in 2012 were based in the United States, nine were in the emerging markets, five in Europe, and two in the other developed region, which includes Australia, Canada, Japan and New Zealand.

So far this year, S&P said that missed payments accounted for 13 defaults, distressed exchanges accounted for eight, bankruptcy filings accounted for six, and another eight defaulters were confidential.

The remaining four entities defaulted for various other reasons, according to the release.

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