Moody's assigns Baa3 to Barings Private

Moody's Investors Service said it assigned Baa3 long-term issuer and senior unsecured notes ratings to Barings Private Credit Corp. (BPCC), a business development company externally managed by Barings LLC (Barings), a subsidiary of Massachusetts Mutual Life Insurance Co.

“BPCC's Baa3 long-term issuer and senior unsecured ratings reflect the company's stand-alone profile of Ba1 and one notch of rating uplift based on Moody's expectation that there is a low probability that MassMutual will provide support to BPCC if necessary to prevent a default.

“Moody's notes that if BPCC were to improve its stand-alone profile to Baa3, Moody's could cease incorporating MassMutual support uplift in BPCC's ratings, barring a strengthening of Moody's assessment of MassMutual's willingness and ability to provide support. Moody's assignment of a Baa3 rating to BPCC's long-term senior unsecured privately-placed notes reflects the notes' priority within BPCC's capital structure,” the agency said in a press release.

BPCC's outlook is stable. The outlook is based on the forecast that operating conditions for BDCs are becoming more favorable as the economy strengthens and coronavirus effects ease, contributing to improved strength and stability of asset quality, profitability and leverage metrics over the next 12-18 months, Moody’s said.

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