Source: 8/18/08 Dow Jones Daily Bankruptcy Review
Credit ratings agencies said that the number of companies most at risk of defaulting on their debt has soared this summer as consumers cut spending and the credit crisis hammers troubled companies, Dow Jones Daily Bankruptcy Review reported yesterday. At the end of July, 63 companies carried the weakest liquidity rating and were most vulnerable to default, Moody’s Investors Service said in a report on Friday. The total is up from 53 a month earlier, marking the highest monthly jump since the ratings agency began its liquidity ratings for companies with junk-rated debt almost six years ago. The findings follow a report from Standard & Poor’s on Thursday that listed 156 companies as most at risk of default, the highest total since May 2003. Through Aug. 11, 52 companies globally defaulted on debt worth $41 billion, according to S&P. The companies S&P lists as most at risk of default have rated debt of $352 billion, nearly triple last month’s total of $125 billion.