Middle Market & Private Credit – 2/10/2025

Private Credit Risk Not Systemic, Yet Structures, Asset Classes Evolving

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Private credit, in isolation, is not currently a systemic risk given numerous mitigants, particularly within direct lending, which continues to dominate the asset class, Fitch Ratings says in a new report. Increased transparency will aid in the assessment of risk, but evolving structures, new asset classes and growing interconnectedness require closer monitoring.