Private credit ·
Moody's: counting PIK amendments and extensions lifts the private credit default rate from 4.0% to 5.8%
Across 607 credit-estimate borrowers in the 12 months to June 2026, 4.0% were reported defaults; including PIK amendments and maturity extensions among distressed borrowers raised it to 5.8%. Software borrowers using PIK had the weakest credit metrics.
Why it matters for deal teams: Your default stats undercount stress if they ignore amendments. The amendment and PIK-switch monitors are how you see it in your own book first.
Source: Moody's Ratings (Sector In-Depth, 14 Oct 2026), via Private Equity Wire ↗ · more ↗