标普全球-私人信贷争取违约后的时间（英）-14页_4mb

Report Summary: Buying Time Post-Default with Private Credit

This report analyzes the impact of private credit on defaulters, based on reviewing over 1,200 defaults from 2008 to 2023. Key findings include:

• A higher proportion of selective defaults (50%) among borrowers with private credit compared to 43.2% without private credit.
• Shorter average time between defaults (about 1.8 years) for repeat defaulters using private credit, versus 2.2 years for those without.
• Less frequent repeat defaults and longer default intervals when private credit is for restructuring purposes, potentially allowing more time for recovery.
• Characteristics of private credit borrowers, such as close lender relationships and alignment with private equity, may reduce transaction costs in restructurings.
• Private credit dry powder (e.g., $150 billion earmarked for distressed investments) could provide funding for struggling borrowers amid higher interest rates and tighter financing conditions.
• Overall, private credit may buy time for companies to weather financial distress, but aggressive debt structures or inadequate restructuring can lead to quicker redefaults.

Implications: The increasing use of private credit could heighten default risks in some scenarios, yet it offers flexibility and support for turnarounds, influenced by economic factors and deal purposes.