KBRA Affirms Ratings for Blue Owl Technology Income Corp.

KBRA affirms the issuer and senior unsecured debt ratings of BBB for Blue Owl Technology Income Corp. ("OTIC" or "the company"). The rating Outlook is Stable.

Key Credit Considerations

OTIC's ratings are supported by the company's ties to the significant $157.8 billion Blue Owl Credit platform as well as the derived benefits from OTIC's SEC exemptive relief to co-invest with other funds managed by the adviser and its affiliates, including the approximately $26.0 billion deployed across the technology strategy. Furthermore, the experienced management team which has decades of experience working in the private markets has built a high credit quality direct lending platform to finance mainly sponsor-backed portfolio companies in the upper-middle market. The company has a team of approximately 40+ tech-dedicated investment professionals and maintains an office in Menlo Park, CA in addition to New York, NY to support origination and risk management.

Ratings are also supported by the $6.2 billion diversified investment portfolio focused on providing financing to 190 technology-focused upper middle market portfolio companies. The investment portfolio was comprised of ~92.2% senior secured first or second lien loans, having a weighted average EBITDA of $377.3 million, weighted average revenue of $1.13 billion, and enterprise value of $6.97 billion. The top three sectors by end markets are Applications Software (15.6%), Systems Software (12.6%), and Health Care Technology (12.4%). The company has invested in 41 sectors that are diversified by subsectors and end-markets. The portfolio companies are backed by high quality private equity sponsors with significant dry powder, which can support portfolio companies in adverse markets. As of December 31, 2025, the company had one investment on non-accrual status representing only 0.3% and 0.2% of total investments at cost and fair value (FV), respectively. Furthermore, 94.1% of the portfolio is performing at or above underwriting expectations.

The ratings also reflect the company’s low gross leverage of 0.79x, reflecting strong capital raises since inception of $3.6 billion and a cautious approach to deploying capital. Along with the low leverage is the high asset coverage ratio of 223%, providing for solid asset coverage cushion, which KBRA believes should help OTIC absorb increased market volatility in uncertain markets. The company has continued to diversify its funding sources as well as increase its committed bank facilities. OTIC has a revolving credit facility, three SPV asset facilities, a CLO, and senior unsecured notes. As of December 31, 2025, the company's liquidity was adequate with $955 million of available committed lines and $153 million of unrestricted cash with $175 million of senior unsecured debt due within two years and unfunded portfolio company commitments of $859.1 million, most of which are not expected to be drawn and are tied to transactions. As a perpetual-life BDC, the company raises equity monthly and intends to offer to repurchase shares up to 5% of outstanding shares quarterly. More recently, investors requests for redemptions have been elevated. In 4Q25, the company repurchased 15.4% of outstanding shares to fully meet investor requests leading to net outflows of $400 million. In 1Q26, the company repurchased 5% of outstanding shares despite requests for 40.7% of shares outstanding for a net outflow of $52 million. While the company intends to offer up to 5% of outstanding shares to investors for liquidity each quarter, the company is not required to do so and may amend or suspend the repurchase program at any time at the discretion of the board. To ensure sufficient liquidity to meet these repurchases, including in more stressful markets, the company maintains adequate committed bank lines and cash to cover multiple quarters of 5% tenders.

The strengths are counterbalanced by the potential risk related to the company’s illiquid investments as a BDC, its short operating history offset by the broader technology lending that has been a core part of the Blue Owl platform, high percentage secured debt (93.8%), and retained earnings constraints as a regulated investment company (RIC). In addition, OTIC's meaningful exposure to software and other technology-related sectors may heighten sensitivity to shifts in market sentiment, particularly amid uncertainty around AI-driven disruption and evolving competitive dynamics. Furthermore, there is a potential for increased non-accrual investments with a more uncertain economic environment with high base rates, inflation, and geopolitical risks.

Blue Owl Technology Income Corp. is a private, perpetual-life non-traded, externally managed, closed-end management investment company that has elected to be regulated as a BDC under the 1940 Act and has elected to be treated as a RIC, which, among other things, must distribute to its shareholders at least 90% of the company’s investment company taxable income. The company was formed in June 2021 as a Maryland corporation and commenced operations in May 2022. The company is managed by Blue Owl Technology Credit Advisors II LLC, an indirect subsidiary of Blue Owl Capital, Inc. (NYSE: OWL), which had approximately $307+ billion of AUM.

Rating Sensitivities

A rating upgrade is not expected in the near to medium future. A rating downgrade and/or Outlook change to Negative could be considered if there is a significant downturn in the U.S. economy with negative impact on OTIC’s earnings performance, asset quality, or leverage. A significant change in senior management and/or risk management policies could also lead to negative rating action.

To access ratings and relevant documents, click here.

Methodology