Fitch’s Privately Monitored Middle Market Portfolio Overview − 3Q24 (Part 3)

Fitch Ratings|November 20, 2024

Content hub / Article / Fitch Ratings / Fitch’s Privately Monitored Middle Market Portfolio Overview − 3Q24 (Part 3)

Click here to download report.

In the charts above, Fitch presents aggregate data for Middle Market companies that it privately rates on a monitored basis for asset managers, defined as:

in the area of $500 million of debt; or
$100 million of EBITDA or below.

The quarterly downgrade-upgrade ratio for the PMR portfolio fell to its lowest level since 2Q22. Fitch recorded 16 downgrades and 11 upgrades in 3Q24, resulting in a quarterly ratio of 1.5x, a significant decrease from 3.5x in 1Q24 and 4.4x in 2Q24. Four out of the 20 unique defaults involved either Chapter 11 or liquidation. In comparison, none of the 10 unique defaults in 2023 initially involved Chapter 11 or liquidation.

Contact Brad Hamner

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.

Report

Credit Journal-Private Credit

Fitch Ratings’ latest Credit Journal series is a subject-specific, curated compilation of in-depth research and commentary. This edition explores the growing world of private credit, including non-bank lending across business development companies.

Download

Report

PitchBook's US PE Middle Market Report

The middle market is off to its best start to a year since 2021, but its share of PE keeps slipping.

Download

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