FitchRatings

Middle Market & Private Credit – 6/17/2024

Default Rate Rises in Fitch’s U.S. Privately Monitored Corporate Ratings Portfolio Click here to learn more. The default rate for Fitch’s corporate portfolio of U.S. Privately Monitored Ratings (PMR) continues to rise despite better-than-expected resilience and growth of the U.S. economy as issuers continue to struggle with elevated interest rates and impending loan maturities…. Login

Middle Market & Private Credit – 6/10/2024

U.S. BDC Earnings, Credit Headwinds to Persist in 2024 Fitch-rated U.S. business development companies (BDCs) face persistent headwinds in 2024, with rising paid-in-kind (PIK) income and continued markdowns of investments during 1Q24 signaling additional credit issues and resultant net investment income (NII) pressure…. Login to Read More...

Middle Market & Private Credit – 6/3/2024

Fitch’s Private Middle Market Portfolio, Rating Activity Download FitchRating’s Report here. The default rate in Fitch’s PMR portfolio climbed marginally in 1Q24, reaching 4.1% from 3.7% in the previous quarter, following one additional net default…. Login to Read More...

Middle Market & Private Credit – 5/27/2024

Fitch’s Private Middle Market Portfolio, Rating Activity Download FitchRating’s Report here. Downgrades greatly outweighed upgrades in 1Q24 as high interest rates affected the FCF and financial flexibility of issuers in lower rating categories…. Login to Read More...

Middle Market & Private Credit – 5/13/2024

Fitch’s Privately Monitored Middle Market Portfolio Overview, 1Q24 Download FitchRating’s Report here. In the charts above, Fitch presents aggregate data for MM companies, defined as in the area of $500 million of debt or $100 million of EBITDA or below, that it privately rates for asset managers…. Login to Read More...

Middle Market & Private Credit – 5/6/2024

Fitch’s Privately Monitored Middle Market Portfolio Overview, 1Q24 Download FitchRating’s Report here. In the chart above, Fitch presents aggregate data for MM companies, defined as in the area of $500 million of debt or $100 million of EBITDA or below, that it privately rates for asset managers…. Login to Read More...

Middle Market & Private Credit – 4/29/2024

How Does the Default Outlook for the Middle Market Compare to BSL? Download FitchRating’s Report here. Fitch tracks defaults in our portfolio of about 300 middle market loans that we rate privately for asset managers. The default rate in this portfolio was about 3.7% in 2023, up from under 3% in 2022, also primarily due…

Middle Market & Private Credit – 4/22/2024

How Does the Default Outlook for the Middle Market Compare to BSL? Download FitchRating’s Report here. The default rate for loans in Fitch’s U.S. Leveraged Loan Universe was 3.3% at the end of 2023, in line with our forecast of 3.0%-3.5% and up from just 1.6% the previous year…. Login to Read More...

Middle Market & Private Credit – 4/15/2024

How Do Covenants for Private Credit Loans Compare to Broadly Syndicated Loans? Download FitchRating’s Report here. While liability management exercises (LMEs) are not necessarily prohibited in direct lending documents, they are considerably less common than in the BSL market. We have yet to observe LMEs in the private credit portfolio rated for asset managers…. Login