...In 2024, defaults in Fitch Ratings' Global Infrastructure and Project Finance group (GIG) decreased, with zero defaults compared to two defaults in 2023. Defaults historically have occurred only among speculative-grade (SG) securities. As such, the 2024 annual default rate for all Fitch-rated GIG securities fell to 0.0% from 0.4% in 2023. Investment-grade (IG) GIG securities maintained a zero default rate, consistent with historical patterns. The SG default rate was 2.2% in 2023. For historical context, GIG experienced its highest one-year default count in 2014, with seven securities defaulting, resulting in a 1.9% default rate for the entire portfolio. Among SG securities, these seven defaults represented a 10.1% default rate. Examining medium-term trends, the five-year moving average default rate for all GIG securities remained stable at 0.2% for the fifth consecutive year. Among SG securities, the five-year moving average default rate marginally decreased to 1.1%. From a long-term perspective,...
