Monthly corporate defaults fell to eight in April this year, despite market volatility and tariff uncertainty, according to S&P Global Ratings.
So far, the year-to-date total is 34, significantly lower than the 55 recorded over the same period in 2024.
Read more: Morningstar: Private market firms face headwinds amid tariff-related fears
“Seven out of eight defaulters in April were first-time defaulters,” Ekaterina Tolstova, S&P Global Ratings credit analyst, said.
“Most defaults originated from three sectors, namely: health care, media and entertainment, and chemicals, packaging, and environmental services.”
Read more: Hamilton Lane highlights opportunity for private credit amid tariff uncertainty
However, distressed exchanges accounted for almost 90% of defaults in April and 68% of the year-to-date total, marking the highest year-to-date proportion since 2008.
S&P warned that prolonged or increasing tariff uncertainty could raise the likelihood of defaults in future.
Read more: US tariffs may create divergence in mid-market credit quality
