<\/p>\n
Trade disruptions weighing on the economic outlook, and specific sectors\u2019 prospects.<\/p>\n
After enjoying a reprieve in April, global corporate defaults are expected to rise again in May, says Moody\u2019s Ratings.<\/p>\n
In a new report, the rating agency said that it expects global defaults to rebound this month, after a decline in April, as only eight issuers defaulted last month, down from 11 in March.<\/p>\n
\u201cThe monthly default count will likely return to double digits in May,\u201d Moody\u2019s said, noting that it has already identified six defaults, and a few other companies, \u201chave missed interest payments but are currently within grace periods, or have launched transactions that we will likely consider to be distressed exchanges when completed.\u201d<\/p>\n
Indeed, six of the eight defaults in April were distressed debt exchanges, it said.<\/p>\n
\u201cFinancially weak companies use this approach to ease near-term debt burdens and address liquidity issues while preserving shareholders\u2019 equity interest,\u201d it noted.<\/p>\n
By geography, North America has accounted for the bulk (70%) of the defaults this year, with most of the rest (22%) coming from the Europe, Middle East and Africa region.<\/p>\n
Moody\u2019s also has a weaker outlook for the global economy, due to the disruption in global trade, and increased U.S. policy uncertainty.<\/p>\n
\u201cWhile our current baseline scenario does not forecast a U.S. recession, we see risks tilted to the downside,\u201d it said.<\/p>\n
Additionally, the rising trade tensions have also led to gloomier sector outlooks, with three sectors \u2014 the energy, mining and retail sectors \u2014 all having their rating outlooks dropped from stable to negative.<\/p>\n
\u201cSo far this year, defaults have come from a variety of sectors, led by retail, high tech and chemicals sectors,\u201d it noted.<\/p>\n
Against this backdrop, \u201cThe default rate will likely be in the range of 3% \u2013 5% at year-end 2025, depending on how risks crystallize,\u201d it said.<\/p>\n
In particular, Moody\u2019s warned that a \u201cfurther escalation\u201d in trade tensions, \u201cwould result in even worse economic outcomes and higher credit risk\u201d \u2014 adding that, \u201cthe risk of economic disruption from geopolitical developments remains.\u201d<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
Trade disruptions weighing on the economic outlook, and specific sectors\u2019 prospects. After enjoying a reprieve in April, global corporate defaults are expected to rise again in May, says Moody\u2019s Ratings. In a new report, the rating agency said that it expects global defaults to rebound this month, after a decline in April, as only eight […]<\/p>\n","protected":false},"author":1,"featured_media":4141,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/05\/Global-economy-66-800x445.webp",800,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/05\/Global-economy-66-463x348.webp",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/05\/Global-economy-66-300x225.webp",300,225,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/05\/Global-economy-66.webp",800,600,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=4140"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4140\/revisions"}],"predecessor-version":[{"id":4142,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4140\/revisions\/4142"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/4141"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=4140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=4140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=4140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}