The loan default rate remained at a historic low in June, according to a report issued today by Standard & Poor’s Leveraged Commentary and Data.
The loan default rate at the end of June was 0.91%, the same 40-month low reading it had at the end of May. It is down from 1.11% at the end of March and 1.87% at the end of December 2010.
For the six months ending June 30, three issuers defaulted on a total of $415 million in loans, the lowest six-month reading since June through December of 2007.
The report credits strong corporate Ebitda growth, previous Chapter 11 bankruptcy filings by weak issuers and the available liquidity that has enabled issuers to extend maturities with the low default rates.
S&P said that the portfolio managers it surveyed believe the default rate will end the year at 0.98%.
