European Debt Defaults Seen Surging in Echo of Covid Turmoil

Credit defaults are set to more than double in Europe this year to levels approaching the worst days of the global coronavirus pandemic.

That’s the view of S&P Global Inc., which expects the trailing 12-month speculative-grade corporate default rate to reach 3.25% by September 2023, up from 1.4% a year earlier, according to its latest estimate.

The increase in defaults is expected as companies in Europe struggle with challenges including an energy crisis, soaring materials costs and cash-strapped customers. At the same time, refinancing existing debt has become increasingly expensive after central banks globally hiked rates to tackle soaring inflation …