Fitch Ratings: We Expect More Defaults in 2021 Than 2020

The video discusses the expected rise in default rates, projecting a 15% increase over two years, with defaults more likely in 2021. It highlights the potential for distressed debt exchanges and the impact of the pandemic on ratings actions, noting that most affected sectors have been reviewed. The focus shifts to triple C ratings as a key area influencing default rates.

What is the expected default rate increase over the next two years?

• 15%

• 25%

• 10%

• 20%

According to financial experts, when are defaults expected to be more prevalent?

• 2022

• 2021

• 2023

• 2020

How many ratings actions have been completed since the pandemic began?

• 700

• 600

• 500

• 400

What term is used to describe companies downgraded from investment grade to junk status?

• Distressed Debts

• Fallen Angels

• Triple C Ratings

• Rising Stars

Which category of ratings is being closely monitored for potential impact on default rates?

• Single A

• Triple C

• Double B

• Triple A