Overseas Crises Boost Corporate Default Rate

Corporate bond defaults last year were the highest since 1991, as turmoil in overseas economies from Russia to Asia stunted company growth and hurt earnings, Standard & Poor’s Corp. said Tuesday.

The 48 companies that defaulted on $10.9 billion of debt last year trailed the 65 companies that defaulted on $19.8 billion of debt in 1991. The lowest default rate since 1991 was in 1993, when seven companies defaulted on $1.43 billion of debt.