U.S. companies defaulted on over $19 billion of debt in the fourth quarter of 2023, half of which were repeat defaulters, according to a report by ratings agency Moody's Investors Service, Reuters reported. The 20 fourth quarter defaults contributed to a U.S. corporate default rate of 5.6% in 2023, its highest since the pandemic downturn in 2020, according to the Wednesday report. Companies defaulted on more than $91 billion in debt last year, nearly tripling from $38 billion in 2022, Moody's noted on Wednesday. Half of the fourth quarter defaults were repeat offenders, the majority of which previously completed a distressed exchange followed by an out-of-court restructuring. In addition, roughly two-thirds of the fourth quarter defaulters were owned by private equity firms. The largest fourth quarter default was by Ligado Networks, a satellite communications company that missed payments on over $4 billion in secured bonds due in November 2023, Moody's said.
