Home / Business and Economy / KKR Fund Rating Plummets to Junk

KKR Fund Rating Plummets to Junk

24 Mar

Summary

A $14 billion credit fund lost its investment-grade rating.
Moody's downgraded the fund to junk status due to challenges.
The rating cut could lead to increased borrowing costs.

A significant investment-grade rating has been downgraded for a private credit fund co-managed by Future Standard and KKR & Co. The $14 billion vehicle, FS KKR Capital Corp., now holds a Ba1 rating from Moody's Ratings, which is one notch below investment grade.

This rare occurrence in the private credit market was prompted by "continued asset quality challenges." Moody's cited these issues as having negatively affected the fund's profitability and its portfolio's value when compared to similar investment vehicles. The downgrade may lead to increased borrowing costs for the fund.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.