Private Credit Shows Signs of Difficult Times Ahead
Moody’s lowered the debt rating of FS KKR Capital to a junk rating
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- Written by Banking Exchange staff
Yesterday, Moody’s lowered the debt rating of the private credit fund FS KKR Capital to a junk rating, while other funds are also under scrutiny.
According to analysts, borrowers who are not making monthly payments are on the way to 6%.
Private credit duress has caused investors to seek withdrawals, but many of these funds are gated for certain time periods.
A junk rating raises lending costs for a fund.
Tagged under Lending; Feature3; Feature; Private Equity; Credit Risk; Rate Risk; Operational Risk; Risk Management; Consumer Credit; Business Credit; Mortgage Credit; The Economy;