Fitch Predicts 10% Default Rate On Euro Junk Bonds

NU Online News Service, Oct. 1, 5:25 p.m. – Fitch Inc., New York, says defaults by low-rated European corporate borrowers could exceed $4 billion in 2002, or about 10% of the amount that will be borrowed through the sale of low-rated, high-yield Eurobonds.

European defaults amounted to just 6.3% of European “junk bond” borrowing volume for the first half, less than the U.S. high-yield default rate of 8.8%, Fitch says.

Telecommunications companies accounted for most of the European defaults, the credit rating firm adds.