Fitch Raises US Loan Default Rate Forecast to 5%-5.5% in 2024

Fitch Ratings increased its US leveraged loan default rate estimate to a range of 5% to 5.5% in 2024, citing cash flow pressures and high interest rates that are making it harder for heavily indebted companies to pay interest on their debt.

• The forecast was increased from a range of 3.5% to 4% previously, according to a statement Wednesday
• The ratings firm said multiple issuers have been added to the 2024 expected default list because they may soon do liability management transactions that are considered distressed debt exchanges
• Among those are Altice France ($5 billion of debt), Altice USA ($5.4 ...