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U.S. Corporate Borrower Defaults Hit Record 9.2% in 2025

3/8/2026

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Summary

Story summary

Fitch Ratings reported that in 2025 the default rate among U.S. corporate borrowers in private credit reached a record 9.2%, up from 8.1% in 2024.
There were 38 defaults across 28 borrowers from a sample of 302 companies, with no defaults in the software sector.
Smaller issuers earning $25 million or less accounted for most defaults.
Fitch attributed the rise to high floating interest rates and minimal hedging.

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Story summary

Fitch Ratings reported that in 2025 the default rate among U.S. corporate borrowers in private credit reached a record 9.2%, up from 8.1% in 2024.
There were 38 defaults across 28 borrowers from a sample of 302 companies, with no defaults in the software sector.
Smaller issuers earning $25 million or less accounted for most defaults.
Fitch attributed the rise to high floating interest rates and minimal hedging.