Private Credit: Business Development Company (BDC) Ratings Compendium: Second-Quarter 2026

BDC Comparisons

Perpetual-Life BDC Comparisons

BDC Sector Introduction and 1H26 Credit Review

In this quarter’s Compendium, KBRA examines the 2Q26 and 1H26 performance of its rated business development companies (BDC) with a focus on credit quality, net asset value (NAV) volatility, and resulting leverage. During 2Q26, KBRA added two BDCs to its rated universe: Fortress Private Lending Fund and one unpublished BDC. 1H26 marked a meaningful shift for the sector, as headwinds that emerged in 2025 became increasingly evident in operating performance. This analysis encompasses KBRA’s universe of 35 rated BDCs, including both published and unpublished ratings. While broader valuation pressures and heightened concerns surrounding credit quality deterioration and artificial intelligence (AI)-related disruption moderated during 2Q26, selective credit issues became more prevalent across the sector, contributing to another sequential increase in non-accrual investments. However, across…