The private credit market showed signs of stabilization in February, with default rates declining, even as investor sentiment continued to weigh heavily on publicly traded private credit funds.
According to Fitch Ratings, the U.S. private credit default rate for the 12 months through February declined to 5.4 percent from 5.8 percent in the 12 months through January.
The agency reported seven private credit default cases in February, with health care providers accounting for two. Health care devices, technology software, building and materials, chemicals, and business services each recorded one case.
Despite the easing in defaults, shares of publicly traded private credit management funds have continued to decline, falling 25 percent to 35 percent since September 2025, as investors react to fears of a broader market downturn….