Investor Presentaiton
Improving Default Outlook Creates Supportive Issuance
Environment
Default Rates for Speculative-Grade
Corporate Rated Issuance¹
Europe
Speculative-Grade Covenant
Quality Indicators²
-U.S. Loans
-U.S. Bonds
European Bonds
Weakening
-Global
-U.S.
16%
14%
12%
10%
8%
4.2% global
6%
historic average¹
4%
2%
0%
2016
2017
5.0
4.5
4.0
3.5
3.0
2.0%
2.5
1.7%
1.6%
2.0
2018
2019
2020
2021F
4.5x
4.4x
3.8x
2012
2013
2014
2015
2016
2017
2018
2019
2020
Improving
2Q 2021 Investor Presentation 18
Global trailing twelve month speculative-grade the default rate will fall to 1.7% by the end of December
» Trailing twelve month global speculative-grade default rate fell to 4.0% at the end of June from 4.9% at the end of May
2012
2013
2014
2015
1. Moody's rated corporate global speculative grade default historical average of 4.2% from 1983 through June 30, 2021. 2021 forecast for trailing twelve months ended December 31, 2021 from Moody's Investors Service "June 2021 Default Report".
Covenant data for European bonds represent a three quarter rolling average, North American loans and bonds represent a two quarter rolling and a three month rolling average, respectively.
Source: Moody's Investors Service.
2009
2010
2011
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2.
Moody's | Better decisionsView entire presentation