US Private Credit Default Rate Fell to 5.2% in July, Fitch Says

The default rate across 1,200 US private debt borrowers tracked by Fitch Ratings fell to 5.2% in July from 5.5% in June on a trailing 12-month basis, according to a report released Wednesday.

• The default rate declined to 9.2% in July from 9.5% in June for a subset of 300 privately issued loans rated by Fitch
• Out of the 1,200 private debt borrowers, Fitch recorded four private credit default events in July from three companies that defaulted for the first time
  • Three cases were tied to interest deferrals, with one bankruptcy
• About 70% of the 63 defaults from July 2024 ...