KBRA Affirms Ratings for BlackRock Private Credit Fund

KBRA affirms the issuer and senior unsecured debt ratings of BBB- for BlackRock Private Credit Fund ("BDEBT" or "the company"). The rating Outlook is Stable.

Key Credit Considerations

The ratings are supported by BDEBT’s ties to BlackRock, Inc. ("BLK") and its $381 billion Private Financing Solutions (“PFS”) platform, formed following the acquisition and integration of HPS Investment Partners (“HPS”) in 2025. PFS manages approximately $254 billion of private credit assets, including $137 billion of direct lending assets, supported by more than 600 investment professionals. BDEBT benefits from the platform’s scale, origination capabilities, experienced investment team and workout resources, and maintains SEC exemptive relief to co-invest among certain BlackRock credit affiliates and investment vehicles.

Also supporting the ratings is the company’s well diversified $2.5 billion investment portfolio at fair value (FV), comprised almost exclusively of senior secured first-lien loans (99.96%) to 295 portfolio companies across 24+ sectors. BDEBT focuses on the core middle market and benefits from relatively small individual position sizes and broad diversification. Non-accrual investments remained low at 0.05% and 0.01% at cost and FV, respectively, as of June 30, 2026, though the portfolio remains relatively unseasoned.

BDEBT’s funding profile is diversified across three SPV asset facilities, a revolving credit facility, and multiple series of senior unsecured notes. As of June 30, 2026, unsecured borrowings represented approximately one-third of total debt, supporting financial flexibility and providing unencumbered assets for unsecured creditors. Gross and net leverage remained low at 0.60x and 0.53x, respectively, below management’s 1.0x target net leverage. Liquidity was solid at approximately $878 million, consisting of $117 million of unrestricted cash and $761 million of available borrowing capacity, compared with approximately $430 million of unfunded commitments and $70 million of near-term unsecured debt maturities.

Counterbalancing these strengths are the company’s short operating history and relatively unseasoned portfolio, the illiquid nature of its investments, and retained earnings constraints as a regulated investment company ("RIC"). There is also the potential for increased non-accrual investments with a more uncertain economic environment with high base rates, inflation, and geopolitical risk.

Incorporated in 2021 as a Delaware statutory trust, the company is a non-traded perpetual-life, continuously offered management investment company that has elected to be treated as a business development company regulated under the Investment Company Act of 1940 and treated as a RIC for tax purposes, which, among other things, must distribute to its shareholders at least 90% of the company's investment company taxable income. BDEBT is externally managed by BlackRock Capital Investment Advisors, LLC, a wholly-owned, indirect subsidiary of BLK.

Rating Sensitivities

Given the Stable Outlook, a rating upgrade is not expected over the medium term. Positive rating momentum could develop over time as BDEBT establishes a longer operating and investment track record, supported by continuity of its experienced management team, maintains leverage at or below the company’s target range over the longer term, and benefits from a return to a more normalized fundraising environment. A rating downgrade and/or Outlook change to Negative could occur if management alters its stated strategy by increasing focus on riskier investments in conjunction with higher leverage. A prolonged downturn in the U.S. economy that negatively affects the company's earnings performance, asset quality, and leverage and/or a weakening in credit monitoring practices could also precipitate negative rating action.

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