The number of corporate defaults in 2008 continued to rise as expected, with eight U.S. defaults in November, bringing the year-to-date total to 74, according to an article published by Standard & Poor's.
After a relatively small number of defaults in October, the count picked up in November, with six defaulters hailing from various nonfinancial sectors, according to the article, titled "U.S. Credit Metrics Monthly: Default Rate Breaches 3% In November."
The preliminary estimate for the U.S. 12-month-trailing speculative-grade default rate in November is 3.16%, slightly higher than the 2.9% in October and higher than the 0.97% reported in December 2007.
"We expect the speculative-grade default rate to escalate to a mean forecast of 7.6% by October 2009, but it could reach as high as 9.6% if economic conditions are worse than expected," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group.
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