Private Equity Drives 80% Defaulted Debt Jump, Moody’s Says

Private equity-owned companies drove an increase in defaults and continue to turn to distressed debt exchanges after credit conditions deteriorated in the wake of US tariff announcements, according to Moody’s Ratings.

In the three months through June, 21 companies defaulted on more than $27 billion of debt, the firm said in a Tuesday report. That’s up from the 15 companies that defaulted on about $15 billion of debt in the prior quarter.