Archive · 31 Jul 2026
Private Credit Defaults Hit Record High in Q2
Fitch Ratings tracks how many companies in the U.S. fail to pay back private loans.
In the second quarter, the rate of failures rose to a record 6%.
They saw 32 new default events from 20 companies.
Most of these defaults involved companies asking for more time to pay.
The worst hit was the industrials and manufacturing sector, while software companies had the lowest default rate.
Fitch says the rise is due to higher interest rates and fewer big company deals.
Private credit default rate rose to 6% in Q2, a record high.
32 new default events involving 20 unique defaulters were recorded.
Maturity extensions were the main driver of delinquencies.
Industrials and manufacturing had the highest default rate at 10.4%.
Software sector had the lowest default rate at 1.2%.
- Who
- Fitch Ratings and its head of private credit for North America, Lyle Margolis
- What
- Record‑high private credit default rate in the United States
- When
- Second quarter of the year
- Where
- United States
- Why
- Interest‑rate hikes and subdued mergers & acquisitions
- 12‑month private credit default rate
- 6%
- Number of default events in Q2
- 32
- Unique defaulters in Q2
- 20
- Highest sector default rate
- Industrials & manufacturing – 10.4%
- Lowest sector default rate
- Software – 1.2%
- Fitch global outlook
- Neutral