Private credit is growing at a rapid pace. Look to Moody’s for comprehensive, in-depth opinion on private credit risk across a full range of investment vehicles, including business development companies, asset managers and middle market collateralized loan obligation tranches. Browse our research, videos, and capabilities below to elevate your insights into the risks and opportunities in private credit markets.



What is private credit?

Private credit is non-bank lending to mostly private-equity-owned, middle-market companies that aren’t publicly traded or issued. It is one of the fastest-growing segments in the lending landscape, with close to $1.3 trillion in assets under management, of which $350 billion is capital waiting to be deployed. Private credit’s rapid growth, coupled with its opacity and comparatively light regulation, place a premium on insight into current and evolving risks in the sector. 

Featured insights

Capabilities

01 In-depth private credit risk analysis

Moody's

In-depth private credit risk analysis

Get a holistic view of risk for the public and private companies of potential borrowers 

Analyze and monitor public and private companies of potential borrowers faster with Moody's highest-quality data and analytics in one integrated solution. Assess risk and gain deeper insights from multiple angles, including financials, Moody’s market-implied ratings and interactive scorecards, debt maturity, ownership structures, Moody’s Ratings sector research, and more. Facilitate your credit workflows with our trusted analytical frameworks, more than a century of expertise in risk, all delivered through AI and cutting-edge technology.

02 Ratings and assessments

Moody's Ratings

Ratings and assessments

Increase confidence with investors and potentially unlock wider access to capital

Moody’s Ratings delivers independent, in-depth, and transparent opinions on credit risk through its credit ratings. We can provide public and private credit ratings on leading private debt investment vehicles, including Business Development Companies (BDCs), Collateralized Loan Obligations (CLOs), Hedge Fund Collaterized Fund Obligations (HF CFOs), Managed Funds and Rated Note Feeder Funds. As an input to our analysis of a Moody’s rated facility such as structured finance, public infrastructure projects or BDCs, we provide Credit Estimates (CEs), an opinion of the approximate credit quality of individual securities, financial contracts, issuers, corporate families or loans.

03 Private company data

Moody's

Private company data

Expedite your due diligence process on potential borrowers or investors

To support due diligence and in-depth analysis on potential borrowers, Moody’s offers the most powerful comparable data resource on private companies worldwide, including firmographic data, financials and ownership structure on 450+ million public and private companies. We provide a broad range of data to support an integrated assessment across risk categories, such as KYC and ESG.

04 Credit risk assessments and early warning signals

Moody's

Credit risk assessments and early warning signals

Assess the credit risk of private credit borrowers and provide an independent assessment to your investors

Decision analytics and early warning alerts backed by Moody’s comprehensive and time-tested risk models provide actionable credit insights on 450+ million companies. Our platform selects ​and updates the best Probability of Default (PD) model based on the most relevant data available, so you can easily analyze an entire portfolio without making complex modeling decisions. 

05 Private credit research

Moody's Ratings

Private credit research

Gain transparency and insights on underlying assets within funds

Leverage research and analytics from Moody’s Ratings to gain insights on sector trends and assess and monitor creditworthiness of Private Credit market participants and investment vehicles.

06 Integrated workflow solution

Moody's

Integrated workflow solution

Automate your financial spreading and manage your credit lifecycle

Our powerful workflow solution helps streamline and improve the entire lending process, from automating the spreading of financials leveraging machine learning to advanced monitoring capabilities with 360-degree views, dashboards, reports, and automated alerts.

07 Portfolio management

Moody's

Portfolio management

Understand your portfolios’ risk and return characteristics

Gain a clear understanding of the current and historical drivers of portfolio performance and risk with Moody’s multi-asset front-office decision support tool for portfolio managers.

Moody's

In-depth private credit risk analysis

Get a holistic view of risk for the public and private companies of potential borrowers 

Analyze and monitor public and private companies of potential borrowers faster with Moody's highest-quality data and analytics in one integrated solution. Assess risk and gain deeper insights from multiple angles, including financials, Moody’s market-implied ratings and interactive scorecards, debt maturity, ownership structures, Moody’s Ratings sector research, and more. Facilitate your credit workflows with our trusted analytical frameworks, more than a century of expertise in risk, all delivered through AI and cutting-edge technology.

Moody's Ratings

Ratings and assessments

Increase confidence with investors and potentially unlock wider access to capital

Moody’s Ratings delivers independent, in-depth, and transparent opinions on credit risk through its credit ratings. We can provide public and private credit ratings on leading private debt investment vehicles, including Business Development Companies (BDCs), Collateralized Loan Obligations (CLOs), Hedge Fund Collaterized Fund Obligations (HF CFOs), Managed Funds and Rated Note Feeder Funds. As an input to our analysis of a Moody’s rated facility such as structured finance, public infrastructure projects or BDCs, we provide Credit Estimates (CEs), an opinion of the approximate credit quality of individual securities, financial contracts, issuers, corporate families or loans.

Moody's

Private company data

Expedite your due diligence process on potential borrowers or investors

To support due diligence and in-depth analysis on potential borrowers, Moody’s offers the most powerful comparable data resource on private companies worldwide, including firmographic data, financials and ownership structure on 450+ million public and private companies. We provide a broad range of data to support an integrated assessment across risk categories, such as KYC and ESG.

Moody's

Credit risk assessments and early warning signals

Assess the credit risk of private credit borrowers and provide an independent assessment to your investors

Decision analytics and early warning alerts backed by Moody’s comprehensive and time-tested risk models provide actionable credit insights on 450+ million companies. Our platform selects ​and updates the best Probability of Default (PD) model based on the most relevant data available, so you can easily analyze an entire portfolio without making complex modeling decisions. 

Moody's Ratings

Private credit research

Gain transparency and insights on underlying assets within funds

Leverage research and analytics from Moody’s Ratings to gain insights on sector trends and assess and monitor creditworthiness of Private Credit market participants and investment vehicles.

Moody's

Integrated workflow solution

Automate your financial spreading and manage your credit lifecycle

Our powerful workflow solution helps streamline and improve the entire lending process, from automating the spreading of financials leveraging machine learning to advanced monitoring capabilities with 360-degree views, dashboards, reports, and automated alerts.

Moody's

Portfolio management

Understand your portfolios’ risk and return characteristics

Gain a clear understanding of the current and historical drivers of portfolio performance and risk with Moody’s multi-asset front-office decision support tool for portfolio managers.

Our market-leading expertise, in numbers*

* Figures are as of March 2023

Case study

Man and woman talking in office space

THE CUSTOMER
A large investment manager with clients all over the world. 

THE BUSINESS CASE
To leverage the growth and margins in the private debt market they are building an innovative lending platform. Their clients require a rating, but private debt issuance is traditionally not rated by agencies.

THE SOLUTION
Through our EDF-X model, our customer is able to assess the credit risk of their actual and prospective private credit borrowers. EDF-X computes the probability of default for private companies and provides an implied rating. Our customer uses these outputs to support their lending decisions, monitor their portfolios, and provide an independent assessment of their private lending portfolios to their investors.

EDF-X Implied Ratings are a globally comparable, widely known and understood risk metric based on a comprehensive approach to assessing the default and recovery of private firms and financial institutions.

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Let’s discuss your needs and how we can support you.
 

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