Blue Owl Fund Gets Negative View from Moody's -- WSJ

Dow Jones04-08

By Margot Patrick

Flagship private-credit fund Blue Owl Credit Income took another knock with an outlook change to negative from Moody's Ratings.

The ratings company said late Tuesday it lowered its view to reflect recent high redemption requests at the $36 billion fund. Last week, Blue Owl Credit Income said investors asked for 22% of their money back at the end of the first quarter, but it capped the redemptions at 5%.

The outlook change doesn't immediately threaten the non-traded business development company's Baa2 investment-grade rating. But it edges the Blue Owl fund closer to the lowest-rung before junk, Baa3. The Blue Owl fund relies on the rating to raise affordable funding from investors in the form of bonds and notes. It raised billions of dollars in financing that way in recent years, and $350 million of the debt matures in September.

Moody's said the ratings outlook could return to stable if net flows improve.

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April 08, 2026 07:08 ET (11:08 GMT)

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