Proskauer’s private credit default rate remained steady at 1.84 per cent in the third quarter of 2025, with the overall picture remaining “one of strength and resilience”.
The international law firm’s latest Private Credit Default Index, which tracks senior secured and unitranche loans in the US, covered 705 loans representing $141bn (£105.8bn) in original principal value.
Read more: US private credit default rate dips to 5.2pc in July
Proskauer said the index rate for the third quarter was “consistent” with the second quarter figure of 1.76 per cent, and remained “significantly lower” than default levels in the broadly syndicated loan market.
“While we’re seeing some movement in default rates, particularly among larger borrowers, the overall picture remains one of strength and resilience,” said Stephen A. Boyko, partner and co-founder of Proskauer’s Private Credit Group. “The market continues to mature, and this quarter’s findings underscore the importance of proactive risk management and thoughtful structuring in navigating today’s credit environment.”
Read more: Morningstar: Default rates rising among middle market issuers
The firm noted both increases and decreases across the three EBITDA bands tracked by the index.
Defaults among companies with EBITDA below $25m fell from 1.8 per cent in the second quarter of 2025 to 1.6 per cent in the third quarter of 2025. For those with EBITDA between $25m and $49.9m, defaults eased slightly from 2.9 per cent to 2.6 per cent. However, defaults among companies with EBITDA of $50m or more rose from 0.5 per cent in the second quarter to 1.2 per cent in the third quarter.
Read more: Private credit default rate falls for second consecutive quarter
