In its 2015 U.S. high-yield default outlook, Fitch Ratings projects that the default rate among high-yield issuers will remain between 1.5% and 2% next year. The ratings agency said its forecast is well below the 34-year historic default average of 4.3%.
The 1.1% default rate in 2014 (trailing 12 months through November) is the lowest since 2010 (1.3%).
The firm said the energy sector remains “closely watched” as oil prices have plunged. The amount of high-yield energy debt has risen 155% since 2009 and currently accounts for 16% of the high-yield universe.