S & P global said default rates on European junk rated corporate bonds would more than double by June 2021, as the new crown outbreak triggered “arguably the most significant deterioration in credit quality ever”. S & P’s basic scenario forecast is that by June 2021, the 12-month historical rolling default rate of speculative grade bonds will rise to 8.5% from 3.35% in June this year, equivalent to 62 corporate defaults. < / P > < p > in the best case, the default rate may rise to 3.5%, while in the worst case, S & P expects the default rate to soar to 11.5%. < / P > < p > “the credit worthiness of speculative European companies we track deteriorated at the fastest rate ever in the first half of the year as a result of the outbreak and subsequent social distance measures S & P analysts said in the report. The sectors most likely to be affected by social distance measures, such as retail, consumer goods, transport and leisure, account for 39% of the total outstanding speculative debt in Europe, they said. Another 6% came from the energy and natural resources industries hit by the collapse in oil prices.