Till 15 October 2008, 75 companies had defaulted globally, affecting debt worth $226 billion, marking a sharp growth in defaults in 2008, up from only 22 major defaults recorded in all of 2007 and 30 in 2006.

Of the 75 defaults, 65 are domiciled in the US, two each are from Canada, Hong Kong, and Mexico, and one each is from France, Germany, Iceland, and the UK. The US also leads in the number of "weakest links," with 140 of the 181 entities, or 77.3 per cent, according to the article, titled "Global Bond Markets' Weakest Links And Monthly Default Rates."

Weakest links are issuers rated 'B-' or lower with either a negative outlook or ratings on CreditWatch with negative implications, and therefore are at greater risk of default.

"In 2008, defaults have increased significantly in the US, but remain scarce elsewhere," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group.

The 12-month-trailing global corporate speculative-grade bond default rate increased to 2.04 per cent in September from 1.84 per cent in August, remaining below its long-term (1981-2007) average of 4.35 per cent for 56 consecutive months.

"The US speculative-grade default rate increased for the ninth consecutive month, reaching 2.68 per cent in September, from 2.44 per cent in August and a 25-year low of 0.97 per cent at the end of 2007," said Vazza.

The default rate in Europe fell marginally to 0.99 per cent from 1.00 per cent, while the emerging markets default rate rose to 0.17 per cent in September from zero in August.

The rating agency said it expects the US speculative-grade default rate to escalate to a mean forecast of 7.6 per cent in the next 12 months through September 2009, with a one-standard-deviation range of 6.5 per cent-8.7 per cent.

This predicted range is multiples higher than the 2.68 per cent trailing 12-month default rate observed in September 2008 and the 25-year low of 0.97 per cent in December 2007.