The global speculative-grade default rate declined in the first quarter, amid ample liquidity conditions, according to a new report from Moody’s Investors Service.

The rating agency reports that the 12-month global speculative-grade default rate finished the first quarter at 2.3%, which is down from 2.9% at the end of 2013, and below its year-ago forecast of 2.5%. Based on its forecasting model, Moody’s now expects the global speculative-grade default rate to edge slightly lower this year, ending 2014 at 2.2%.

“While we saw an increase in March, the pace of corporate defaults still remains slow,” notes Albert Metz, managing director of Moody’s credit policy research. “With ample liquidity still available, we expect a moderate default rate in 2014.”

A total of eight Moody’s-rated corporate debt issuers have defaulted so far in 2014, with seven of those defaults coming in March. There were 21 defaults in the first quarter of 2013, including nine in March of that year. Of the eight defaults in the first quarter of this year, all but one were in the U.S., the only non-U.S. default was in Europe.

By dollar volume, the global speculative-grade bond default rate ended the first quarter at 0.9%, down from 1.2% in the prior quarter, Moody’s says. A year ago, the comparable rate was 1.4%, it notes.

Across industries, Moody’s expects default rates to be highest in the consumer services sector in the U.S., and in the media: advertising, printing & publishing sector in Europe in the next 12 months.

Moody’s also reports that its global distressed index, which measures the percentage of high-yield issuers whose debt is trading at distressed levels, came in at 7.1% in the first quarter, down from 7.4% in the prior quarter. At this time last year, the index stood at 8.8%.