Amid growing credit stress, the default rate for U.S. private credit issuers reached a record high in August, Fitch Ratings says.
In a report Monday, the rating agency said its U.S. private credit default rate for the previous 12 months ticked up to a record high of 6.3% in August, up from 6.1% in July.
The increase came as the firm recorded 14 private credit defaults in the month, up from just three in July. The monthly default activity, which represented the highest number of defaults in the past 12 months, included 11 unique defaults and three repeat offenders.
“Health-care providers, business services general, and transportation and distribution each recorded two default events, while the remaining defaults were spread across eight other industries,” Fitch said.
The health-care sector also has the highest 12-month default rate at 9.9%, up from 9.5% in July, and 6.9% in August 2025, the rating agency noted.
The industrial and manufacturing sector matched the health-care sector as it also reported a 9.9% default rate in August, up from 9.5% in July, and up from just 5.2% in August 2025.
The software sector continued to have the lowest default rate among major industries, Fitch said. It recorded a 0.6% default rate in August, down from 1.2% in July, and 2% in August 2025.