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Financial turbulence in 2009 triggered substantial ratings volatility in Europe, said an article published yesterday by Standard & Poor's, titled "2009 Annual European Corporate Default Study And Rating Transitions." The downturn in the credit markets that began in late 2008 resulted in a sharp acceleration in default rates within the rated universe in Europe in 2009. The default count in Europe rose from 8 in 2008 to 20 in 2009, the highest since the dot-com bubble burst in 2002 (22). "From its starting level of 2.65% at the beginning of 2009, the speculative-grade default rate rose to its highest point in 6.5 years to 8.9% in November before declining to 7.98% - more than 3x the 2008 rate - by the end of the year," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research...
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