BlackRock Private Credit Fund's $200 Million Senior Unsecured Notes Rated BBB- by KBRA

KBRA assigns a rating of BBB- to BlackRock Private Credit Fund's $50m and $150m senior unsecured notes due 2028 and 2030, respectively. The rating is supported by ties to BlackRock and its $360bn Private Financing Solutions platform, diversified $1.7bn investment portfolio, and diversified funding mix. The Stable Outlook reflects the company's solid liquidity, low leverage, and diversified asset coverage.

In a significant development for the financial sector, Kroll Bond Rating Agency (KBRA) has assigned a rating of BBB- to BlackRock Private Credit Fund's (BDEBT) $50 million and $150 million senior unsecured notes due in 2028 and 2030, respectively. The rating reflects the fund's strong ties to BlackRock Inc. (NYSE: BLK) and its $360 billion Private Financing Solutions (PFS) platform. The stable outlook underscores BDEBT's solid liquidity, low leverage, and diversified asset coverage.

KBRA's rating is supported by several key factors. The fund's ties to BlackRock and the PFS platform provide a strong credit foundation. The $1.7 billion diversified investment portfolio, with 99.8% of assets being senior secured first lien loans, further bolsters BDEBT's creditworthiness. The fund's focus on the core middle market, with a portfolio valued at $1.7 billion, and its low non-accruals (0.3% at cost and 0.2% at fair value) as of June 30, 2025, also contribute to the positive rating.

BDEBT's funding mix, which includes a secured revolving bank facility, an SPV asset facility, and senior unsecured notes, provides financial flexibility. The issuance of these notes is expected to boost pro forma unsecured debt to total debt to 35%-40%, offering lower asset encumbrance for senior unsecured noteholders. As of June 30, 2025, BDEBT's gross and net leverage were low at 0.87x and 0.83x, respectively, and asset coverage was solid at 214%, exceeding the regulatory requirement of 150%.

The stable outlook is also supported by BDEBT's solid liquidity, with $336 million in available credit lines and $30.7 million in cash, against $364.5 million in unfunded commitments. The company's long-term BSL target of 10% further underscores its commitment to maintaining liquidity.

However, BDEBT's short operating history, unseasoned portfolio, and the uncertain economic environment pose potential risks. The company's reliance on external management by BlackRock Capital Investment Advisors, LLC, and its status as a non-traded perpetual investment company also contribute to the BBB- rating.

In conclusion, KBRA's BBB- rating reflects BDEBT's strong ties to BlackRock, diversified investment portfolio, and solid liquidity. The stable outlook indicates that BDEBT is well-positioned to navigate the current economic environment. However, the company's short operating history and unseasoned portfolio may pose risks in the medium term.