European default rates to rocket to 21.2% in ‘09, predicts Moody’s

Speculative-grade corporate default rates in Europe increased sharply in the first quarter of this year compared to the end of 2008, according to a report by Moody’s which confirms fears that the rise in defaults is set to accelerate in 2009. The default rate rose from 2% in the fourth quarter of last year to 4.8% for this quarter, and Moody’s is predicting it will rocket to 21.2% by the end of 2009.