Middle Market & Private Credit – 7/10/2023

Rating Trend for Middle Market Issuers


Following a modestly positive 2021 in which upgrades in Fitch’s Private Monitored Rating portfolio outpaced downgrades at a rate of around 1.2x, downgrades outpaced upgrades in 2022 at a 1.8x rate as inflation crimped earnings. Downgrades continued to outpace upgrades in 1Q23, with around two downgrades for every upgrade as rising interest rates weighed on cash flow, pressuring liquidity.