Junk bond defaults hit $50 bln and rising-Moody's

By Dena Aubin

NEW YORK, June 12 (Reuters) - Global junk bond defaults have hit the $50 billion mark in 2001 -- a record for one year -- and are expected to continue piling up because corporate profits are sagging and credit quality is getting worse.

Credit rating agency Moody's Investors Service, which reported that default total for the first five months of the year, said defaults have already surpassed the $49.1 billion posted for all of last year.

Falling profits, rising energy costs and intense global competition mean the worst may not be over, Moody's chief economist John Lonski said.

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