Private credit may well be in a “Waiting for Godot” moment—marked by growing anticipation of some unknown reckoning that continues to be deferred. As the industry continues to adapt to various market uncertainties, KBRA notes signs of improving credit quality for some borrowers, while still observing a subset of borrowers that face maturities over the next two years without the growth their sponsors and borrowers had expected.
In this quarterly report, we review the nearly 2,400 KBRA assessments completed for 2,115 unique global middle market (MM)-sponsored borrowers over the last 12 months (LTM) ending June 30, 2025. We examine key trends shaping credit quality by company size and sector, outline the shifts that have taken place in our portfolio during 1H 2025, and share some of our expectations heading to year-end. We also provide new data on 371 surveillance assessments and 251 new assessments conducted in Q2 2025.
The companies assessed in the LTM period held over $1 trillion…