More Companies Are Defaulting Over and Over Again, S&P Says
- About a third of defaults in 2023 were by repeat defaulters
- Percentage of repeating defaults is second highest since 2008
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The percentage of companies that have defaulted on their debt more than once has reached its second highest level since 2008, according to a new report from S&P Global Ratings.
Around 35% of total global defaults in 2023 were by issuers that are “re-defaulters,” a trend that’s also dampening recoveries, Nicole Serino, director of credit research and insights at the ratings company, said in a report. That’s in part because of an increase in the number of issuers with ratings of B- or below, which have high levels of debt.