The sudden economic stop caused by coronavirus containment measures will cause a global recession this year and could see U.S. corporate default rates spike above 10% in the next 12 months, ratings agency S&P Global warned on Tuesday.

“The sudden economic stop caused by COVID-19 containment measures will lead to a global recession this year,” S&P said in a new report

A cash flow slump and much tighter financing conditions as well as the simultaneous oil price shock will hurt creditworthiness it added.

“These factors will likely result in a surge in defaults, with a default rate on nonfinancial corporates in the U.S that may rise above 10% and into the high single digits in Europe over the next 12 months.”