US Private Credit Defaults Hit New Record of 6% in April: Fitch

The default rate for US private credit loans hit a record 6% in the 12 months ended April 30, Fitch Ratings said Monday in a report.

• Of the 99 default events over the period, 81 borrowers defaulted for the first time — the highest number since the firm began tracking in August 2024
• More than half of the defaults were driven by interest payment deferrals and the introduction of payment-in-kind, or PIK, meaning the borrower can pay interest in more debt rather than cash
• Consumer products companies had the highest default rate, at 11.1%, up from 5.9% a year ago ...