Private credit’s rapid growth is altering global capital markets at an unprecedented pace, leading to more competition and new partnerships between banks, insurers and asset management companies.
For more than 100 years, Moody’s has played a critically important role in the public credit ecosystem with ratings, data, and research that are the market standard in understanding credit risk. We have brought this expertise to private credit, helping market participants decode risks and unlock opportunities.
Private credit is non-bank lending. Until recently, loans were principally to private-equity-owned, middle-market companies. Driven by growing institutional investor demand for long-duration, high-yielding and high-quality investments, private credit has expanded into real estate debt, infrastructure debt and asset-based finance (ABF). Within ABF, private asset-backed securities and fund finance are emerging as growth areas, including data center and fund finance securitizations.
Moreover, private credit sponsors are increasingly targeting high net worth individuals as the next phase of industry growth. This shift has led to the rise of semi-liquid fund structures, which appeal to retail investors, potentially providing access to the mass affluent and retirement markets.
Amidst unprecedented uncertainty and volatility, private credit and private equity are about to confront their biggest test in a long time. These markets have experienced strong growth, thriving in both favourable and adverse conditions. However, new obstacles are emerging.
In the dynamic landscape of private credit, market participants can turn to Moody’s Ratings to assess risks and help analyze potential opportunities.
With Moody’s delivering independent, in-depth and transparent opinions on credit risk, our private credit capabilities provide you with unparalleled insights and assessments for non-bank lending.
Moody's Ratings
Moody’s delivers informed, independent evaluations that support effective capital deployment.
Moody's Ratings
Our methodologies support comparability and confidence in a growing asset class, including:
Moody's Ratings
Our ratings and credit estimates empower originators, sponsors, and investors to engage with confidence in securitized and structured private markets. We cover:
Moody's Ratings
Our ratings and estimates help structure financing across complex asset types, while our transparent methodologies offer clarity in an evolving market.
Moody's and MSCI are jointly working to create a first-of-its-kind advancement in providing independent, standardized risk assessments for private credit investments at scale.
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