Moody's Cuts US BDC Outlook to Negative Amid Outflows
Moody's lowered the US BDC outlook to negative due to rising redemptions and leverage. Investors are concerned about AI risks to software loan portfolios.
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MOODY'S CORP has lowered its outlook for business development companies in the United States to negative from stable. This decision follows a period of mounting pressure on the sector, characterized by increased redemption requests and rising leverage among major players. The rating agency highlighted a sharp transition in funding conditions, noting that perpetual non-traded BDCs experienced their first-ever net outflows in the first quarter of 2026 after seeing strong inflows during the third quarter of 2025.








