Global corporate defaults still rising-S&P report

By Elena Moya

LONDON, May 16 (Reuters) - Global defaults are continuing to rise as the global credit squeeze tightens access to debt and capital for companies that struggle to pay their debts, according to a report published on Friday.

The global 12-month corporate speculative-grade bond default rate rose to an annual high of 1.29 percent in April, from 1.14 percent in March, credit rating agency Standard & Poor's said.

This year through May 13, 28 defaults were recorded, affecting $18.9 billion worth of debt. All the defaults were from the United States, except one from Canada, S&P said.

In Europe, where economies have shown more resilience, the 12-month speculative-grade default rate rose to 0.5 percent in April, from 0.49 percent in March.

Tropicana Entertainment LLC, a leisure and media company, has been the biggest default this year, with $2.9 billion of debt affected, the report shows.

The global figure is already above last year's total 22 defaults -- and more than double the amount of debt affected -- and below the 30 defaults in 2006, the credit agency said.

"As economic conditions deteriorate and volatility in the financial markets protract, corporate casualties are piling up faster than in many years," S&P said.

The global default rate is expected to rise to 4.7 percent over the next 12 months, from a 25-year low of 0.97 percent at the end of 2007, amid a weakening economy, lower corporate profits and lending constraints, S&P said.