MOSCOW (Sputnik) — The default rate in the struggling US energy industry has reached a record high, climbing to 13 percent in 2016, the Fitch Ratings agency said.
NewFilings Propel US Energy HY Default Rate to Record 13% #FitchWire https://t.co/PifVgrbzEa pic.twitter.com/JWZPBiTg0x
— Fitch Ratings (@FitchRatings) 2 May 2016
"Two oil and gas producer defaults have propelled the energy high-yield default rate to a record 13%, surpassing the 9.7% mark set in 1999," Fitch Ratings said in a press release adding that the default rate among US oil companies may rise further to 20 percent by the end of the year.
Global oil prices plunged from $115 to less than $30 per barrel between June 2014 and January 2016, hitting their lowest levels since 2003 amid an ongoing glut in global oil supply. The prices have since recovered to around $40-45 per barrel for the Brent crude benchmark.
