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Private Credit Defaults Expected to Surge in 2024

11/27/2025

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Story summary
  • Defaults in the $1.7 trillion private credit market are expected to rise next year, per Kroll Bond Rating Agency (KBRA).
  • KBRA reports 61 CCC- borrowers, signaling severe challenges.
  • They account for 1.4% of debt, with concentrations in health care and technology.
  • Nearly 30% of debt maturing before 2026 comes from highly leveraged or negative-earnings firms.
  • Despite low third-quarter default rates, KBRA says this does not reflect true stress.