MSCI and Moody’s Corporation are partnering to develop a new solution aimed at providing independent risk assessments for private credit investments as demand grows among investors for greater transparency and standardised tools in a rapidly expanding market.
Under the agreement, MSCI will contribute its private capital dataset, which includes information on more than 2,800 private credit funds and over 14,000 portfolio companies, sourced directly from fund managers. Moody’s will integrate its EDF-X credit risk models – used to assess financial strength and identify early warning signals for public and private companies – into MSCI’s private credit offerings.
The combined platform will offer third-party risk assessments at both the company and facility level, using consistent and transparent metrics.
The new service will be separate from the credit ratings provided by Moody’s Ratings to private credit issuers.
