Corporate Default Rate to Breach Historical Levels, Moody’s Says

Moody’s Investors Service expects US corporate default rates to climb in the months ahead as lower-rated issuers come under pressure from higher interest rates, slower economic growth and limited market liquidity.

• The ratings grader sees the US speculative-grade default rate rising to 5.6% a year from now, breaching the historical long-term average of 4.7%, Moody’s analysts including Julia Chursin wrote in a Thursday report
• Moody’s said its baseline scenario assumes that financial regulators and other policymakers will largely succeed in containing the ripple effects of stress at individual banks
  • “However, in an uncertain economic environment and given the fragility of ...