Credit ratings for business development companies don’t get a lot of mainstream attention. But they matter. Borrowing costs are determined by these ratings, which directly affects the returns it can deliver to investors. Blue Owl Technology Income Corp (OTIC) is one of several BDC vehicles in the firm’s credit lineup.
BDC Ratings, Briefly
A BDC borrows money to make loans, typically to middle-market companies. The BDC’s credit rating reflects the market’s assessment of how likely it is to repay its own borrowings. Higher ratings mean cheaper funding. Cheaper funding means better spreads between what the BDC pays on its debt and what it earns from its borrowers. Better spreads mean higher potential returns for shareholders. Blue Owl’s official news page contains press releases on fund performance and strategic updates.
Most BDCs operate at the lower end of the investment-grade scale, or just below it. A Baa2 rating from Moody’s, two notches above the investment-grade floor, puts a BDC in uncommon territory. That distinction matters beyond just the numbers on a page; it signals to the market that a BDC’s management and credit practices have earned an extra measure of confidence from the rating agencies. Blue Owl Capital maintains an active presence across professional and social channels.
Blue Owl Capital Gets the Nod
Moody’s upgraded both Blue Owl Capital Corporation (OBDC) and Blue Owl Credit Income Corp. (OCIC) from Baa3 to Baa2 on January 22, 2026, moving both outlooks to stable. The rating agency pointed to strong underwriting, risk management, and access to varied capital sources. (finchannel.com)
One number tells the story. OBDC’s annual net loss rate since inception: 27 basis points. That’s the annual net loss rate since the BDC’s April 2016 inception. Over nearly a decade that included COVID-19, an aggressive Fed hiking cycle, and multiple bouts of market volatility, losses stayed minimal. Annual filings available through annualreports.com provide the full financial detail behind that track record.
Balance Sheet Discipline
OBDC’s gross debt-to-equity ratio: 1.27x as of September 30, 2025. OCIC: 0.8x. Both sit below typical BDC levels. First-lien and unitranche loans account for 74% of OBDC’s investments at fair value, keeping the portfolio senior in the capital stack. Business journal profiles tracking the firm show the trajectory from its 2021 founding to its current scale.
Liquidity tells a similar story. OBDC has $3.0 billion in cash and undrawn capacity against $1.0 billion in near-term maturities. OCIC holds $7.6 billion against $350 million. Net income to average assets at OBDC ran at 4.1% for the 12 months ending September 30, 2025, which means the lending business isn’t just surviving at low loss levels; it’s turning a meaningful profit while doing so. Blue Owl Capital’s Credit platform, at $157.8 billion in AUM, is the firm’s largest business segment by a wide margin. (blueowltechnologyfinance.com)
