The default rate in U.S. private credit transactions rose in February, according to Fitch Ratings.
The rating agency reported that the trailing 12-month default rate rose to 5.7% last month, up from 5% in the previous month.
There were eight new defaults in February, Fitch reported, along with one repeat defaulter.
Over the past three months, the sector is now averaging eight defaults per month, up from the average of 4.7 in 2024, it noted.
The health care sector led the way, with two new defaults in February, bringing the total to 11 over the past 12 months.
“Lingering impacts from labor challenges and adverse operating leverage from declining revenues, especially for smaller niche operators, increased the sector’s default rate to 7.5% in February,” it said.
The consumer products sector added a new default too, bringing its default rate to 7.6% in February, up from 6.1% in January.
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