CORRECT: Moody’s Raises Junk Default Forecast as Outlook Worsens

(Corrects headline, first paragraph to show default forecast is for all speculative-rated issuers, not just bond issuers)

Moody’s Investors Service raised its forecast for the global default rate by speculative-rated issuers to 3.7% from 3.3% a month ago, citing credit conditions that are turning more negative.

• Conditions will continue to tighten, driven by rising borrowing costs, extended war in Ukraine, slower growth, energy and commodities inflation, supply-chain disruptions and market volatility, Moody’s said in a report Friday
  • The 12-month speculative-rated default rate was 2.1% at the end of June
  • Baseline forecast for 3.7% is still below historical average of 4.1% ...