CREDIT POLICY
EXHIBIT 15
Moody’s-Rated 2014 Corporate Bond and Loan Defaults*
Company
Country
Initial Default Type
Bonds (US$ mil)
Loans (US$ mil)
In Jan 2014 cohort?**
Affinion Group Holdings, Inc. African Bank Limited
Alion Science and Technology Corp Allen Systems Group, Inc. Alliance Bank Altegrity, Inc. American Media, Inc. Banco Espirito Santo, S.A.*** Bumi Resources Tbk (P.T.)
Cash Store Financial Services Inc. (The) China Forestry Holdings Co Ltd Codere S.A.
Corporacion GEO, S.A.B. DE C.V. Desarrolladora Homex, S.A.B. de C.V. Endeavour International Corporation Energy Future Competitive Holdings Co. Energy Future Holdings Corp.
Energy Future Intermediate Holding Company Espirito Santo Financial Group S.A. Espirito Santo Financiere S.A. Essar Steel Algoma Inc. Global Geophysical Services GSE Environmental, Inc. Guitar Center Inc. Harlan Laboratories, Inc. Heta Asset Resolution AG***
Hidili Industry International Development Ltd Ideal Standard International S.A. iPayment Holdings, Inc iPayment Inc.
James River Coal Company Metinvest B.V.
Midwest Vanadium Pty Ltd MModal Inc.
Momentive Performance Materials Inc. (Old) Nelson Education Ltd.
New Sbarro Intermediate Holdings, Inc. New World Resources N.V. NexTag, Inc.
United States South Africa United States United States Kazakhstan United States United States Portugal Indonesia Canada China Spain Mexico Mexico United States United States United States United States Luxembourg Luxembourg Canada United States United States United States United States Austria China Luxembourg United States United States United States Netherlands Australia United States United States Canada United States Netherlands United States
Distressed exchange Missed interest payment Distressed exchange Missed interest payment Missed interest payment Distressed exchange Distressed exchange Missed interest payment Distressed exchange Bankruptcy
Missed interest payment Missed interest payment Missed interest payment Missed interest payment Missed interest payment Chapter 11 Chapter 11 Chapter 11 Bankruptcy Bankruptcy
Missed interest payment Chapter 11
Prepackaged Chapter 11 Distressed exchange Distressed exchange Distressed exchange Distressed exchange Distressed exchange Distressed exchange Distressed exchange Chapter 11 Distressed exchange Missed interest payment Chapter 11 Chapter 11
Missed interest payment Prepackaged Chapter 11 Missed interest payment Distressed exchange
89 350 213 300 615 599 121 800 1,075 121 180 1,033
705 0 650 7,709 1,162 269 785 250
535
589 197 360 134 375 473 386 335 250 3,077
368
195 950 11 181 75 24 350 81 172 280
65 500 291 433 137 93
yes yes yes yes no yes yes yes yes yes yes no no no yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes
16 MARCH 4, 2015
SPECIAL COMMENT: ANNUAL DEFAULT STUDY: CORPORATE DEFAULT AND RECOVERY RATES, 1920-2014
CREDIT POLICY
EXHIBIT 15
Moody’s-Rated 2014 Corporate Bond and Loan Defaults*
Company
Country
Initial Default Type
Bonds (US$ mil)
Loans (US$ mil)
In Jan 2014 cohort?**
NII Capital Corp NII Holdings Inc.
NII International Telecom S.C.A. Northland Resources AB Phones4u Finance plc Phosphorus Holdco plc
Renhe Commercial Holdings Company Limited Sare Holding, S.A.B. de C.V. SMU S.A.
Sorenson Communications, Inc.
Texas Competitive Electric Holdings Co LLC Travelport LLC
UniTek Global Services, Inc. USEC Inc. VAB Bank
Verso Paper Holdings LLC Waterford Gaming LLC YRC Worldwide Inc.
Brazil Brazil Brazil Sweden United Kingdom United Kingdom China Mexico Chile United States United States United States United States United States Ukraine United States United States United States
Missed interest payment Missed interest payment Missed interest payment Bankruptcy
Placed under administration Placed under administration Distressed exchange Distressed exchange Missed principal and interest payments
Prepackaged Chapter 11 Chapter 11 Distressed exchange Missed interest payment Chapter 11
Missed principal and interest payments
Distressed exchange Missed principal payment Distressed exchange
2,750
0 1,600 745 698 333 660 18 735 8,234 389
530 112 401 42 51
203
72 571 22,636
191
yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes
* This list only includes companies that have rated bonds and/or loans within one year prior to default. ** Only issuers included in the Jan 1st cohort are included in Moody’s default rates in this report. *** These banks only defaulted on subordinated debts.
17 MARCH 4, 2015
SPECIAL COMMENT: ANNUAL DEFAULT STUDY: CORPORATE DEFAULT AND RECOVERY RATES, 1920-2014
CREDIT POLICY
EXHIBIT 16
Annual Moody’s-Rated Global Corporate Issuer Default Counts, 1920-2014
Year
Inv-Grade Spec-Grade All-Rated
Year
Inv-Grade
Spec-Grade
All-Rated
Year
Inv-Grade Spec-Grade All-Rated
1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951
8 7 10 5 3 7 4 1 0 3 2 6 10 9 5 9 3 4 9 2 2 0 0 0 0 0 0 0 0 0 0 0
25 25 23 22 37 34 18 15 8 12 21 78 108 189 60 51 19 18 17 13 22 10 4 3 3 2 0 2 0 5 0 1
33 32 33 27 40 41 22 16 8 15 23 84 118 198 65 60 22 22 26 15 24 10 4 3 3 2 0 2 0 5 0 1
1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 2 0 0 0 1 0 0 0 0 2 0
0 0 1 1 0 1 0 0 2 3 4 3 0 0 1 0 1 0 25 3 5 3 3 4 2 3 4 1 4 2 11 13
0 0 1 1 0 1 0 0 2 3 4 3 0 0 1 0 1 0 27 3 5 5 3 4 2 4 4 1 4 2 13 13
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
1 0 3 0 0 4 0 1 0 0 0 0 0 0 1 1 4 4 13 0 0 2 0 0 14 11 2 1 1 1 2
12 15 30 31 29 47 83 65 31 19 16 27 17 25 48 100 120 183 126 83 38 29 31 18 89 255 56 38 64 68 51
13 15 33 31 29 51 83 66 31 19 16 27 17 25 49 101 124 187 139 83 38 31 31 18 103 266 58 39 65 69 53
18
MARCH 4, 2015
SPECIAL COMMENT: ANNUAL DEFAULT STUDY: CORPORATE DEFAULT AND RECOVERY RATES, 1920-2014
CREDIT POLICY
EXHIBIT 17
Annual Rated Global Corporate Bond and Loan Default Volumes, 1970-2014*
Year
Investment Grade Bond
Loan
Total
Speculative Grade Bond
Loan
Total
Bond
All Ratings
Loan
Total
1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
$154 $0 $0 $17 $0 $0 $0 $68 $0 $0 $0 $0 $243 $0 $183 $0 $138 $0 $0 $1,506
$0 $1,348
$0 $0 $0 $0 $0 $0 $399 $461 $4,115 $21,195 $46,350
$0 $0 $2,155
$0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,225 $3,950 $5,363 $13,122 $870 $0 $2,825
$0 $0
$154 $0 $0 $17 $0 $0 $0 $68 $0 $0 $0 $0 $243 $0 $183 $0 $138 $0 $0 $1,506
$0 $1,348
$0 $0 $0 $0 $0 $0 $399 $1,686 $8,065 $26,558 $59,472 $870 $0 $4,980
$0 $0
$756 $132 $215 $94 $69 $176 $34 $179 $112 $18 $302 $47 $515 $1,110 $399 $1,344 $3,993 $8,940 $5,435 $9,517 $20,071 $15,485 $6,601 $1,871 $2,100 $4,788 $4,053 $5,104 $9,469 $25,311 $24,723 $78,379 $104,091 $35,281 $11,810 $26,798 $7,758 $4,755
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $242 $361 $0 $1,603 $570 $698 $424 $299 $172 $1,435 $948 $3,017 $14,107 $26,206 $34,103 $37,223 $10,208 $4,197 $8,745 $2,630 $1,983
$756 $132 $215 $94 $69 $176 $34 $179 $112 $18 $302 $47 $515 $1,110 $399 $1,344 $3,993 $9,182 $5,796 $9,517 $21,674 $16,055 $7,299 $2,295 $2,399 $4,961 $5,488 $6,052 $12,486 $39,418 $50,928 $112,483 $141,314 $45,490 $16,008 $35,543 $10,388 $6,738
$910 $132 $215 $112 $69 $176 $34 $247 $112 $18 $302 $47 $758 $1,110 $582 $1,344 $4,131 $8,940 $5,435 $11,023 $20,071 $16,833 $6,601 $1,871 $2,100 $4,788 $4,053 $5,104 $9,868 $25,772 $28,838 $99,574 $150,441 $35,281 $11,810 $28,953 $7,758 $4,755
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $242 $361 $0 $1,603 $570 $698 $424 $299 $172 $1,435 $948 $3,017 $15,332 $30,156 $39,466 $11,078 $4,197 $11,570 $2,630 $1,983
$910 $132 $215 $112 $69 $176 $34 $247 $112 $18 $302 $47 $758 $1,110 $582 $1,344 $4,131 $9,182 $5,796 $11,023 $21,674 $17,403 $7,299 $2,295 $2,399 $4,961 $5,488 $6,052 $12,885 $41,104 $58,994 $139,041 $46,359 $16,008 $40,523 $10,388 $6,738
$50,345 $200,786
19 MARCH 4, 2015
SPECIAL COMMENT: ANNUAL DEFAULT STUDY: CORPORATE DEFAULT AND RECOVERY RATES, 1920-2014
CREDIT POLICY
EXHIBIT 17
Annual Rated Global Corporate Bond and Loan Default Volumes, 1970-2014*
Year
Investment Grade Bond
Loan
Total
Speculative Grade Bond
Loan
Total
Bond
All Ratings
Loan
Total
2008 2009 2010 2011 2012 2013 2014
* Default volume in millions of USD
EXHIBIT 18
$183,155 $38,945 $4,856 $1,156 $323 $1,893 $939
$10,380 $21,931
$0 $1,411
$0 $0 $0
$193,535 $60,876 $4,856 $2,567 $323 $1,893 $939
$55,060 $145,361 $20,553 $29,336 $31,360 $35,671 $40,466
$32,322 $123,876 $14,042 $4,671 $18,289 $17,889 $27,510
$87,382 $269,237 $34,595 $34,007 $49,650 $53,560 $67,976
$238,215 $184,306 $25,409 $30,492 $31,683 $37,564 $41,405
$42,701 $145,807 $14,042 $6,082 $18,289 $17,889 $27,510
$280,916 $330,113 $39,451 $36,574 $49,973 $55,453 $68,915
Annual Issuer Default Counts and Volume Totals by Geographical Region, 1986-2014
Year
Africa &
Middle East Asia Pacific
Issuer Counts
Europe
Latin America
Dollar Volumes (US$ mil)
North Africa &
America Middle East Asia Pacific
Europe
Latin America
North America
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 1 0 0 0 0 1 0
0 0 0 4 1 0 0 0 0 0 0 2 5 8 2 15 2 2 0 0 0 0 3 17 2
0 0 0 0 0 1 0 0 1 0 0 0 1 9 3 16 26 7 6 1 7 3 12 34 9
0 0 0 0 0 0 0 0 0 0 1 2 0 7 2 6 15 11 0 1 2 0 2 10 2
33 31 29 47 82 65 31 19 15 27 16 21 43 77 117 147 96 63 31 29 22 15 86 204 45
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,444
$0 $0 $183 $0 $0 $0 $0 $650 $0
$0 $0 $0 $969 $200 $0 $0 $0 $0 $0 $0 $614 $1,444 $4,339 $3,968 $7,832 $1,842 $550 $0 $0 $0 $0 $625 $7,073 $6,290
$0 $0 $0 $0 $0 $999 $0 $0 $774 $0 $0 $0 $200 $4,012 $713 $10,635 $47,385 $3,296 $2,521 $207 $1,601 $771 $53,374 $28,010 $9,119
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $207 $310 $0 $1,908 $238 $1,909 $10,087 $4,152 $366 $100 $167 $0 $555 $3,031 $487
$4,131 $9,182 $5,796 $10,054 $21,474 $16,404 $7,299 $2,295 $1,625 $4,961 $5,280 $5,129 $11,241 $30,845 $54,074 $116,221 $141,472 $38,361 $12,938 $40,215 $8,620 $5,967 $226,361 $291,350 $23,554
20 MARCH 4, 2015
SPECIAL COMMENT: ANNUAL DEFAULT STUDY: CORPORATE DEFAULT AND RECOVERY RATES, 1920-2014