Fitch Shifts Goldman Sachs BDC Outlook to Negative
Fitch Ratings revised its outlook for Goldman Sachs BDC to negative due to a low asset coverage cushion and rising non-accrual rates which reached 4.7% in the first quarter. The agency noted increased risk from payment-in-kind income while the fund works to maximize recovery on older loan positions.
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Fitch Ratings revised the outlook for GOLDMAN SACHS BDC INC to negative on May 15 following credit deterioration in its loan portfolio. The United States-based fund saw its non-accrual rate climb to 4.7% in the first quarter, up from 2.8% previously. This shift highlights growing risks in middle-market lending as artificial intelligence disrupts traditional software business models and borrower repayment capacity.
