Eight financial institutions defaulted in 2024: S&P

Majority are NBFIs, and most are located in the Americas.

Eight financial service entities rated by S&P Global Ratings defaulted in 2024.

Of these, six were nonbank financial institutions (NBFIs), and one was from the banking sector— continuing the trend of most defaults being NBFIs that were seen in 222 and 2023.

None of the entities were from the Asia Pacific region.

Two of the seven entities were from the US: Resolute Investment Managers Inc., and Curo Group Holdings Corp, both NBFIs.

There were one each from the United Kingdom, Canada, Colombia, Mexico, and France.

For four consecutive years, there were no defaults from the insurance sector.

The eight defaults equaled the total in 2023.

A study in ratings
Of the eight defaults, six were rated ‘CCC’ or below just prior to the default, S&P said. A CCC rating indicates that the institution has a high risk of defaulting on its debt obligations.

Among the entities that defaulted in 2024, the average time to default was 5.62 years from S&P’s initial rating, and 6.4 years historically.

In 2024 there were no investment-grade defaults, compared with two in 2023.