Moody's Cuts US BDC Outlook to Negative Amid Outflows

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.