U.S. leveraged loan issuers (sampled from the Morningstar LSTA US Leveraged Loan Index) once again demonstrated strong profitability in Q2 2026, with revenue growth of 8% and EBITDA growth of 9%, both flat with Q1 and reaching their highest levels since 2022. Despite ongoing concerns about AI spending, robust profitability alleviated credit pressure, with the average leverage ratio decreasing to 4.85x and interest coverage rising to 4.95x.