Reperforming Credit
Private Credit & Direct Lending
Definition
Reperforming credit describes a borrower, note, or receivable that missed payments, entered workout, or defaulted, then resumed scheduled or modified payments after cure, amendment, recovery, or restructuring.
Why it matters
Reperformance is a better outcome than charge-off, but it still reveals prior stress. In platform data, reperforming assets should not be lumped with clean-performing assets without context because the path to repayment was not smooth.
Common misconceptions
- •Reperforming does not mean the original underwriting was clean.
- •A reperforming deal can still re-default.
- •Platform default rates may treat reperforming credits differently, so methodology matters.
Technical details
How to read reperforming status
Ask what changed: maturity, coupon, amortization, collateral, guarantees, or borrower reporting.
Separate current payment status from historical distress.
Treat reperforming status as a recovery signal and a credit-quality signal at the same time.