Fitch: Caesars' Default Would Add Nearly 90 Basis Points to U.S. HY Rate

NEW YORK--()--The potential default of Caesars Entertainment Operating Company would push the trailing 12-month (TTM) U.S. high yield default rate to 3.3%, according to Fitch Ratings 'U.S. High Yield Default Insight.' This report updates a comment that Fitch published on Nov. 7.

The TTM U.S. high yield default rate ended October at 2.4%, its lowest level since April, when Energy Future Holdings' (EFH) large bankruptcy first propelled the rate above 2%. Since then, there have been 17 issuer defaults on $7.8 billion in bonds, compared with 19 and $11.5 billion over the same period in 2013.

The TTM U.S. leveraged loan default rate ended October at 3.1%, and is 0.9% excluding the bankruptcy of EFH.

The full report 'U.S. High Yield Default Insight' is available at 'www.fitchratings.com.'

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: Fitch U.S. High Yield Default Insight (Imminent Caesars - Default Adds Nearly 90 Basis Points to Rate)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=812908

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Contacts

Fitch Ratings
Media Relations
Brian Bertsch, New York
Tel: +1 212-908-0549
Email: brian.bertsch@fitchratings.com
or
Eric Rosenthal
Senior Director
+1-212-908-0286
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Michael Paladino, CFA
Senior Director
+1-212-908-9113
U.S. Leveraged Finance
or
Mariarosa Verde
Managing Director
+1-212-908-0791
Credit Market Research

Contacts

Fitch Ratings
Media Relations
Brian Bertsch, New York
Tel: +1 212-908-0549
Email: brian.bertsch@fitchratings.com
or
Eric Rosenthal
Senior Director
+1-212-908-0286
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Michael Paladino, CFA
Senior Director
+1-212-908-9113
U.S. Leveraged Finance
or
Mariarosa Verde
Managing Director
+1-212-908-0791
Credit Market Research