US$1.4bn of BDC loans were added to non-accrual status in 1Q25

LSEG|May 21, 2025

Content hub / Article / LSEG / US$1.4bn of BDC loans were added to non-accrual status in 1Q25

A total of US$1.4bn of BDC loans were added to non-accrual status in 1Q25, up from roughly US$1.2bn in the prior quarter. Despite this move higher, the growth in market size from fundraising helped push the weighted average non-accrual rate for public and private BDCs combined marginally lower to 1.35% in 1Q25 from 1.40% in 4Q24. The sectors which saw the most loans placed on BDC non-accrual status in 1Q25 were healthcare (US$307m), technology (US$268m) and services (US$207m). Rounding out the top 5 were automotive (US$122m) and telecom (US$114m).

Contact CJ Doherty

Podcast

Business development companies and the rise of balance sheet financing vehicles

Fitch's Deb Murnin and Chelsea Richardson discuss the growing use of off-balance-sheet JVs and finance companies among BDCs, exploring the drivers, leverage impacts, portfolio risk profiles, and potential rating implications for Fitch-rated BDCs.

Listen

September 15-16, Hudson Yards, New York

Private Debt Investor New York Forum

Bringing together the investors, managers and advisers shaping the next phase of the market — 200+ allocators and $10.6 trillion of LP capital expected. Benchmark strategies, hear from leading LPs, and cut through market noise over two unmissable days.

Learn more

Report

US Private Credit League Tables H1'26

The definitive rankings covering private credit activity in H1'26.

Download

Report

PitchBook's Q2 2026 US PE Breakdown

Software freezes and energy powers on as US PE deal value falls 38% in Q2 2026.

Download

Webinar

Making sense of private credit defaults

What does private credit default data really tell us? Join our exclusive webinar featuring experts from KBRA, Moody's, Fitch Ratings, and S&P Global to find out.

Latest news

See all stories

Article | Bloomberg

Rate hike expectations ease as term SOFR curve flattens

August 20, 2026

The CME six-month Term SOFR rate reached a recent high of 3.979% on July 28 before retreating to 3.837% as…

Article | LSEG

3Q26: New loan assets rise to 44% of total lending, a 3-year high

August 19, 2026

New loan assets as a proportion of total US loan volume make up 44% of the 3Q26 pipeline to date,…

Article | Private Debt Investor

North American GPs dominant as fundraising accelerates