by Calculated Risk on 4/01/2009 06:09:00 PM

From Reuters: Moody's downgraded $1.76 trln U.S. corp debt in Q1

... Moody's Investors Service downgrading an estimated $1.76 trillion of debt, a record high ...

The downgrades included a record number to the lowest rating categories, signaling the approach of the worst defaults since at least World War Two ...

"The most prominent new driving force behind credit rating reductions would be deterioration of commercial real estate," [Moody's chief economist John Lonski] said. ...

Moody's has forecast that the U.S. default rate will peak around 14.5 percent in November.
emphasis added

Hopefully the bank stress tests have all these defaults factored in ...