The number of private-equity-backed companies, whose credit ratings are in distress, has risen by almost 30% since last year. : The number of private equity backed companies, which credit ratings are in distress, has risen by almost 30% since last year. Distress rated companies are those that are rated B- or worse and which also have a negative outlook. According to a piece by Joseph Weitemeyer, Research Editor at Buyouts Insider, 99 private equity backed companies have distressed credit ratings. This means that these companies have a significant probability of defaulting on their bonds.