Of the 147 debt issues that defaulted in 1999, 18-more than 10%-were by the oil and gas businesses, according to Moody's Investors Service. Right behind them were telecommunications-business issues-16 of them. The $44.6 billion of debt that issuers threw in the towel on in 1999 was a new record and more than double the $21.2 billion of 1998. Moody's says the rate slowed in the fourth quarter of 1999, though-26 issues collapsed under the weight of $6.2 billion in debt-and the credit rating firm is hopeful that the more moderate default rate will continue this year. Moody's vice president and senior analyst Sean Keenan attributes many of the 1999 Dear Lender John letters to continued fallout from the 1997 Asian crisis, "which precipitated weakness in commodity prices and international trade." "For instance, the oil and gas industry contributed 18 defaults with a total of $4.4 billion long-term public debt as a result of ill-timed acquisition strategies coupled with soft commodity prices. The telecommunications industry produced 16 defaults on $4.2 billion in debt through 1999, followed by the shipping industry, which produced eight defaulters totaling $1.3 billion of debt." Looking at the fourth quarter alone, though, it wasn't the oil and gas industry that was the ugliest dog. The health-care industry contributed 36% of the defaults, totaling more than $2.2 billion of long-term public debt. The situation was led by Integrated Health Services Inc., Moody's reports. Still, the oil and gas industry did its share, coming in second with $614 million of defaulted debt. -Nissa Darbonne