S&P reports four new defaults for Dec. 17-Dec. 23; 2015 count to 111

By Caroline Salls

Pittsburgh, Dec. 28 – Standard & Poor’s reported four new defaults for the week of Dec. 17 to Dec. 23, bringing its year-to-date default tally to 111 issuers, according to a news release.

S&P said the 111 defaults figure was last exceeded in 2009, when it reached 242 during the same period.

S&P said it lowered its global scale rating to D from CC on Empresas ICA SAB de CV after the company announced it would not make the $31 million interest payment due Nov. 30 on its 8 7/8% senior notes due 2024 before the expiration of the grace period on Dec. 29.

The ratings agency also downgraded Foreign Economic Industrial Bank (Vnesprombank) to R from B+ after the Central Bank of Russia intervened by introducing temporary administration for the next six months.

In addition, S&P lowered its corporate credit rating to SD from CC on Arch Coal Inc. after the company exercised its 30-day grace period for interest payments due on its 9 7/8% senior notes due 2019, 7% senior notes due 2019 and 7¼% senior notes due 2021.

Finally, S&P lowered its corporate credit rating on Heckler & Kock GmbH to SD from CCC after the company repurchased €45 million of its €295 million of senior notes due 2018 at a discount of 11%.

Of the total defaulters so far this year, S&P said the United States dominates the list with 66 issuers, followed by the emerging markets with 25, Europe with 15 and the other developed nations, including Australia, Canada, Japan and New Zealand, with five.

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