Apr. 10 at 2:30 PM
Fitch affirms BBB rating for
$BXSL w/ a stable outlook
Cite: BXSL’s largest industry exposure is to software, but this portion of the portfolio continues to show strong EBITDA growth w/ a substantial equity cushion.
While Fitch will continue to monitor developments in the software portfolio, the agency believes credit implications of the AI evolution will play out over the medium term
Fitch believes BXSL’s software allocation is broadly in line with the peer BDC group based on reported figures.
Fitch said that the rating affirmation reflects the “strong risk profile of the portfolio”, citing its focus on first-lien investments, the strength of BXSL’s relationship w/ its manager
$BX , relatively low leverage & a “sound” liquidity profile.
Fitch said asset quality remains strong, w/ low non-accruals representing 0.64% of the portfolio
Fitch added that it expects BDCs (in general) to continue facing a competitive underwriting environment, weaker earnings & pressure on asset quality in 2026.
