Capital Restructuring | First Quarter 2014

May 2014 – Compared to the prior quarter, default rates during the First Quarter 2014 fell across all three ratings agencies to the 1.4% (Fitch) to 1.7% (Moody’s) range. Looking ahead, default rates are expected to remain relatively steady over the next 12 months, absent a significant market event based on main factors: (1) short watch lists, (2) scarce near-term maturities, (3) plentiful liquidity across the credit markets, and (4) issuers continuing to post solid cash-flow growth. The EFH bankruptcy filing was captured in 2Q14 and hence did not impact 1Q14 default rates.

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May 22, 2014