Moody's Downgrades KKR and Future Standard's Private Credit Fund to Junk Status Due to Rising Bad Loans and Weak Earnings.

Moody's downgraded private credit fund FS KKR Capital Corp to junk status, citing rising bad loans and weak earnings. Non-accrual loans reached 5.5% of total investments, higher than peers. Moody's highlighted asset quality challenges, higher leverage, payment-in-kind loans, and lower first-lien loans as concerns. The downgrade could increase borrowing costs and lower future returns.