Fitch U.S. Private Credit Default Rate (PCDR): MCO vs. PMR Components

Fitch's PCDR tracks defaults across ~1,400 U.S. private credit issuers and comprises two components. MCOs (Model-Based Credit Opinions) are point-in-time credit assessments that feed ratings for pooled vehicles like middle market CLOs. PMRs (Privately Monitored Ratings) are full ratings typically used by insurance companies for regulatory capital purposes (a smaller, lower-rated pool skewing toward smaller borrowers).
Chart: Accredited InsightsSource: Fitch