Moody’s has downgraded FS KKR Capital, a private credit vehicle managed by KKR and FS Investments, to Ba1, pushing the fund below investment grade, according to a report by Bloomberg.
The downgrade reflects “continued asset quality challenges”, according to Moody’s, citing pressure on portfolio performance and profitability relative to peers. The move could increase borrowing costs for the approximately $14bn vehicle, which relies on debt markets to enhance returns.
The fund’s non-accrual rate r...
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