The move by Moody's is the latest sign of distress in private credit; retail investors have been rushing to withdraw funds from Blackstone to Apollo.
Moody’s Ratings
on Monday downgraded a private credit fund
run by KKR
and Future Standard to junk amid rising bad loans and a string of weak earnings.
The ratings firm lowered the debt ratings of FS KKR Capital Corp by one notch to Ba1 from Baa3 — pushing it into “junk” territory — saying that the fund’s underlying asset quality had worsened more than its peers.
The KKR fund, often referred to by its ticker, FSK, has become one of the most visible fault lines in the private credit story.
Blackstone president Jon Gray defended the quality of loans within the firm's flagship private credit fund.
It also downgraded the long-term deposit ratings of BofA, JPMorgan and Wells Fargo to Aa2 from Aa1 and cut the long-term…
(Bloomberg) -- Even before talk of fresh unfunded tax cuts took center stage in the budget wrangling on Capitol Hill, US bond…
Private credit is expected to see a surge in defaults as investors continue to pull money from the sector.
Leverage levels in private credit are a point of focus
