KBRA Releases Research – KBRA Global Cumulative Default Rate Study: 2011-2025
KBRA releases research that analyzes its cumulative default rates (KCDR) by rating category across 1-, 3-, 5-, and 10-year horizons, using data from 2011 through 2025. As part of KBRA's broader review of ratings performance, the report expands on the perspectives in our Global Rating Stability and Transition Study: 2011-2025, providing insight into cumulative default experience across sectors, geographies, and market environments.
Key Takeaways
KBRA’s observed KCDRs were broadly consistent with the expected relationship between rating level, time horizon, and default risk.
Investment-grade (IG) ratings showed meaningfully lower cumulative default rates than non-IG ratings. At the aggregate level, the 10-year KCDR for non-IG ratings was nearly 18x the comparable IG result.
