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S&P Global trims back default forecasts

FILE PHOTO: S&P office is seen at right in Canary Wharf in London

LONDON (Reuters) – Credit rating agency S&P Global trimmed its forecasts on Thursday on how many U.S. and European firms were likely to default in the coming 10 months as the coronavirus fallout continues.

The firm said it now expected the 12-month trailing corporate default rate to rise to around 9% in the United States and 8% in Europe by September 2021.

In October it had predicted U.S. rates would rise to 12.5%, albeit for a slightly different time frame of the following nine months, while Europe’s rate would climb to 8.5%.

(Reporting by Marc Jones; Editing by Tom Arnold)

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