An unusually large number of IDBs issued in 1985 and 1986 in order to beat the deadline eventually defaulted
Sometime later, Fred Kent experienced financial difficulties and defaulted
on the Chase loan, which prompted Chase to commence legal action to collect payment.
Fitch is not aware of any state that has permanently defaulted
on its GO or tax-backed debt since the Civil War, or of any extended default on a local GO or tax-backed bond since the Great Depression.
In addition, recovery rates on defaulted
bonds have been running above the historical long-term average of 40% of par since 2004.
Multifamily loans continue to dominate CMBS loan defaults as the sector accounted for nearly half (48%) of all newly defaulted
loans in 2005, although multifamily represents only 21% of the CMBS universe.
NEW YORK & LONDON -- Fitch Ratings has launched Distressed Recovery (DR) ratings for US and European structured finance transactions, affecting 977 distressed and defaulted
In the first half of 2005, 11 issuers defaulted
The number of defaulted
issuers carrying a Fitch rating fell eightfold from 2003 levels, resulting in a Fitch annual default rate of 0.
After 30 days, if the government is committed to continuing to pay principal and interest on any outstanding defaulted
bonds according to their original terms, the ratings on these securities would be raised to a non-default rating to the extent that they are not fully extinguished through tenders.