Moody's Outlook for BDCs Falls to 'Negative' -- WSJ

Dow Jones04-08

By Heather Gillers

Moody's Ratings lowered its outlook for the business-development-company sector to "negative" from "stable" on Tuesday, citing rising redemption pressure.

Investors asked to pull nearly $14 billion in the first quarter from business-development companies, which are a type of private-credit fund that makes loans to mostly junk-rated companies.

Among the concerns Moody's cited:

-- Some BDC managers have allowed investors to withdraw only a portion of their requested amount so withdrawal requests may continue.

-- Most publicly traded BDCs are trading at discounts to their reported value, making it hard for managers to raise equity.

-- Relatively high borrowing by BDCs limits managers' flexibility.

The business-development companies Moody's rates have combined assets of about $400 billion.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

April 07, 2026 17:45 ET (21:45 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

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The full stream can be found by searching P/WSJL (WSJ Live Coverage). \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  April 07, 2026 17:45 ET (21:45 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2625961378","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2625961378","pubTimestamp":1775598300,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Moody's Ratings lowered its outlook for the business-development-company sector to \"negative\" from \"stable\" on Tuesday, citing rising redemption pressure.Investors asked to pull nearly $14 billion in the first quarter from business-development companies, which are a type of private-credit fund that makes loans to mostly junk-rated companies.-- Some BDC managers have allowed investors to withdraw only a portion of their requested amount so withdrawal requests may continue.-- Most publicly traded BDCs are trading at discounts to their reported value, making it hard for managers to raise equity.-- Relatively high borrowing by BDCs limits managers' flexibility.The business-development companies Moody's rates have combined assets of about $400 billion.This item is part of a Wall Street Journal live coverage event. 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