Private Credit Default Rate Stays at 5.2% in August: Fitch

The default rate across 1,200 US private debt borrowers tracked by Fitch Ratings held steady at 5.2% in August on a trailing 12-month basis, according to a report released Friday.

• The default rate declined to 8.4% in August from 9.2% in July for a subset of 300 privately issued loans rated by Fitch, according to the report
• Fitch recorded nine private credit default events in August out of the 1,200 private debt borrowers, including six companies that defaulted for the first time
  • Five cases were tied to interest deferrals, with two out-of-court restructurings and two stressed maturity extensions
• In the ...