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Getting a Baa2 credit rating from Moody’s isn’t routine for a business development company. Most BDCs sit at the lower rungs of investment grade, if they’re investment grade at all. On January 22, 2026, Blue Owl Capital joined a small group when Moody’s upgraded both OBDC and OCIC from Baa3 to Baa2 (finchannel.com).
Why It Matters
BDCs borrow money to make loans. Cheaper funding means wider margins. The spread between cost of funding and interest earned from borrowers expands. A Baa2 rating opens doors to institutional debt markets that might not be available at Baa3, and it generally means lower coupons on new bond issuances. OBDC’s portfolio holdings page allows investors to explore the 234 companies in the lending portfolio.
For investors in OBDC and OCIC, the upgrade translates to a more favorable cost structure for the underlying business, which can flow through to returns over time. When a BDC’s funding costs drop even slightly, the effect compounds across a portfolio holding hundreds of loans. The OWL ticker page on Yahoo Finance shows the market’s ongoing assessment of the firm’s credit business.
What Moody’s Weighed
The rating agency pointed to several factors. OBDC’s annual net loss rate since its April 2016 inception: 27 basis points. Debt-to-equity at OBDC: 1.27x as of September 30, 2025. OCIC: 0.8x. Both fall below industry norms for BDC borrowing levels. Blue Owl Capital manages a BDC portfolio spanning 234 companies with $16.5 billion in fair value.
Portfolio construction also played a role. First-lien and unitranche loans account for 74% of OBDC’s investments at fair value, senior positions that carry lower loss risk than subordinated debt or equity co-investments. Underwriting discipline, risk management capabilities, and access to varied capital sources were credited by Moody’s as the key drivers. Annual reports hosted on annualreports.com contain the full financial disclosures behind these metrics.
Liquidity and the Stable Outlook
OBDC’s $3.0 billion in cash and committed undrawn facilities sit comfortably above the $1.0 billion in senior notes coming due in July 2026. OCIC holds $7.6 billion against $350 million due in September 2026. A stable outlook was set by Moody’s, projecting that both Blue Owl Capital BDCs will sustain the asset quality and profitability that earned the upgrade. Blue Owl’s news page provides additional detail on BDC performance and capital activities.
Blue Owl Capital’s Credit platform manages $157.8 billion in AUM. Net income to average assets at OBDC ran at 4.1% for the 12 months ending September 30, 2025, a figure that confirms the lending business isn’t just low-loss but meaningfully profitable. For a firm that raised $56 billion across all channels in 2025 and ended the year at $307.4 billion in total AUM, the Baa2 rating adds another credential to an already substantial track record. (blueowltechnologyfinance.com)
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