Number of defaults in the United States reached a six-year high

In connection with the coronavirus epidemic, the number of cases where US companies are unable to fulfill financial obligations has become the largest since 2014.

Number of defaults in the United States reached a six-year high

This is evidenced by the monthly calculation of defaults on the lending market using borrowed funds, which is carried out by the rating agency Fitch Ratings.

In May, the total amount of defaults amounted to 12.6 billion dollars. For 2020, this amount is 33.3 billion dollars. The companies engaged in retail sales over the past two months have provided the bulk of defaults, as they had to cease their activities in an epidemic.

At the same time, companies such as the Neiman Marcus Group, J.Crew Group and JC Penney filed for bankruptcy protection in May. Chesapeake Energy Corporation said it could not gain access to financing, and is considering a debt restructuring worth more than $9 billion.

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