Fitch Ratings’ U.S. private credit default rate remains at record high 6.0% in May 2026

Fitch Ratings reported that the U.S. private credit default rate remained at a record high of 6.0%, consistent with the elevated level observed in April 2026. This marks a continuation of the upward trend in defaults, which had eased slightly to 5.4% in February 2026. The increase in defaults is attributed to sustained high interest rates and the compounding debt burdens of middle-market corporate borrowers, according to Fitch.

The default rate is measured through Fitch’s Private Credit Default Rate Index (PCDR), tracking major middle-market loans across the institutional private credit market. Additionally, Fitch noted that its U.S. Privately Monitored Ratings Portfolio (PMR), a smaller pool of highly leveraged companies, reached a new high of 9.2% in 2025. These figures highlight growing systemic stress within the private lending ecosystem.

Industry observers have also pointed to challenges in accurately assessing credit quality, particularly in non-publicly reported vehicles, where valuation models may not reflect real-time cash flow realities. As the market continues to navigate these pressures, investors and financial institutions are closely monitoring developments in the $2 trillion private credit sector.