Defaults continue to fall, finds Moody's

Moody’s reports that the 12-month rolling global high yield default rate fell to 7.5% in May, down from 9% the previous month. The rating agency projects that the default rate will fall to 2.4% by the end of this year. It says the only Moody’s-rated default during May was that of Chem Rx. The specialist pharmacy group filed for chapter 11 bankruptcy on 6 June, but was presumably included by Moody’s on the basis of an earlier payment failure.

Creditflux’s tally of defaults includes only one corporate default in May, that of Neff Rental, which filed for bankruptcy on 16 May.