With private credit concerns brewing, ratings agencies turn negative on these little-known companies

Concerns over the health of the private credit sector are leading ratings agencies to take a look at a somewhat obscure part of capital markets: business development companies. Troubles in the legacy software sector due to the ascent of AI, along with pressure from a higher-for-longer interest rate outlook, are causing writedowns of loans, and rating agencies are concerned about the overall leverage levels of BDCs. …