Distressed-Debt Deals Often End in ‘Hard Default,’ Moody’s Warns

Moody’s Analytics says about 25% of companies that complete a distressed exchange eventually fall into hard defaults such as bankruptcy or missed payments. The finding underscores elevated credit risk and the limited durability of distressed restructurings. The article is largely informational, but it points to a cautious backdrop for high-yield and stressed credit.

Analysis

Moody’s Analytics says about 25% of companies that complete a distressed exchange eventually fall into hard defaults such as bankruptcy or missed payments. The finding underscores elevated credit risk and the limited durability of distressed restructurings. The article is largely informational, but it points to a cautious backdrop for high-yield and stressed credit.