Leveraged Loan Default Rate Falls to 4.8% in August, Fitch Says

The leveraged loan default rate decreased to 4.8% in August from 5.2% in July on a trailing 12-month basis, according to a Fitch Ratings report.

• The high-yield default rate increased to 3.3% in August from 3% the month prior on a trailing-12-month basis
  • Rates were 5.7% for loans and 3.6% for bonds on an issuer-count basis
• Fitch recorded $4.6 billion in total defaults, including a $2.2 billion distressed debt exchange for Saks Global Enterprise
  • Summit Behavioral Healthcare and ModivCare also contributed to the tally, with $1.9 billion in combined defaults
• Fitch held its expected 2025 default rates steady for ...