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(Bloomberg) -- U.S. trailing-12-month speculative-grade corporate default rate rose to 3.8% in June from 3.6% in May, S&P analysts Diane Vazza, Sudeep Kesh and Gregg Moskowitz say in report.

• One of five June defaults was from energy sector, which has an estimated HY default rate of 18.6% versus ex-energy of 2.1%
  • Junk default rate should fall to 3.3% by March 2018
  • Retail & restaurants sector had highest distress ratio among all sectors at 21.2%; total U.S. distress ratio was 7.4%
• European trailing-12-month speculative-grade corporate default rate fell to 2.1% in June from 2.3% in May, analysts say in separate note
  • Rate expected to stay ~2% through March 2018 versus average trailing-12-month default rate of 3.2% between January 2002- March 2017
• Earlier: U.S. Investment Grade Issuance Slumps in June, Fails to Break $100b

To contact the reporter on this story: Molly Smith in New York at msmith604@bloomberg.net To contact the editors responsible for this story: Nikolaj Gammeltoft at ngammeltoft@bloomberg.net Kenneth Pringle