Private credit ·
Morningstar DBRS: distressed categories now 18% of its private credit ratings; downgrades outpace upgrades 3.1 to 1
Across about 510 rated middle-market borrowers, CCC (high) to C was 18% of active ratings, up from 14% a year earlier (12 months to 22 Sep 2026). DBRS also notes fund structures borrowing CLO features such as sub-line securitizations and senior fee notes.
Why it matters for deal teams: Rising CCC share is exactly what eats CLO CCC buckets and OC cushions. Rated-note fund structures need the same test math.
Source: Morningstar DBRS ↗
Related workflows
- PCT-037 · CLO compliance what-if: if these five loans drop to CCC, which OC test fails first?
- PCT-027 · Shadow-rate a borrower on the agency's own grid, then re-score your internal ratings when financials land
- PCT-042 · CLO equity and mezz surveillance: 30 deals, 12 managers, one cushion table the morning reports land