Sunaina Sinha Haldea

“A borrower with strong earnings growth and 2–3x interest coverage can absorb rates that would be unsustainable for a highly-leveraged business already close to 1x coverage,”

Sunaina Sinha Haldea · said date not stated · reported 2026-09-11

Haldea said the most exposed borrowers have heavy debt loads and little cushion to cover interest costs.

“It is more likely to be a rolling process in which stronger borrowers refinance normally, while stressed credits are dealt with through amendments, extensions, equity injections and restructurings. Rising defaults and non-accruals suggest that process is already underway.”

Sunaina Sinha Haldea · said date not stated · reported 2026-09-11

Haldea described the refinancing process as gradual, with stressed credits handled through amendments and restructurings.

“The recent move in government bond yields is a reminder that private credit borrowers cannot simply rely on falling base rates to solve the refinancing equation. The focus is increasingly shifting from waiting for cheaper money to whether businesses can support today's all-in cost of debt through earnings growth, deleveraging or additional equity.”

Sunaina Sinha Haldea · said date not stated · reported 2026-09-11

Haldea said private credit borrowers cannot rely on falling base rates to solve the refinancing equation.

“The refinancing wall is unlikely to arrive as one dramatic event,”

Sunaina Sinha Haldea · said date not stated · reported 2026-09-11

Haldea said the refinancing wall in private credit is unlikely to arrive as one dramatic event.