Large U.S. corporate bankruptcies surged to one of the highest monthly totals in five years in December 2025, with filings increasing to 72 from 63 in November, according to the latest S&P Global Market Intelligence data. This rise extended the 15-year high for annual filings set in November, reaching 785 for the year, the highest since 2010. Rising interest rates have been a significant factor, with companies struggling to refinance debt.
Key findings in the report include:
- December 2025 saw 72 bankruptcy filings, marking the second-highest monthly volume since July 2020 and August 2025.
- The year 2025 recorded 785 bankruptcies, marking the third consecutive annual increase and the highest total since 2010. This trend underscores the persistent financial challenges faced by corporations amid rising interest rates.
- Interest Rate Impact: The U.S. Federal Reserve’s interest rate hikes in 2022 and 2023, aimed at combating inflation, have elevated corporate and consumer debt rates. Companies with weaker credit profiles have struggled to manage existing and new debt, leading to increased bankruptcies.
- Despite challenges, overall corporate debt conditions remained resilient in 2025. Investment-grade companies maintained strong credit ratings, while speculative-grade companies saw improvements in their interest coverage and debt-to-equity ratios.
- Sector-Specific Bankruptcies: Bankruptcies were concentrated in the industrials and consumer discretionary sectors, with the industrial sector experiencing 117 filings in 2025. This concentration highlights sector-specific vulnerabilities amid broader economic pressures.
