Private credit ·
Fitch peer review of 8 US BDCs: non-accruals at 2.7% of cost; NII squeezed; one Outlook to Negative
The 8 peer-review BDCs averaged non-accruals of 2.7% of debt at cost (1.3% at fair value), against 2.5% at cost for all Fitch-rated BDCs at 2Q26 (range 0–9.4%). For Fitch-rated BDCs, NII fell from 5.4% of average portfolio at cost in 2025 to 4.8% annualized in 1H26. Seven ratings were affirmed, one was Review - No Action, and one Outlook was revised to Negative.
Why it matters for deal teams: A sector read on BDC credit before Q3 results. Check whether a non-accrual figure is at cost or at fair value before you benchmark against it.
Source: Fitch Ratings ↗