Moody’s Ratings has revised its outlook on a major credit vehicle managed by Blue Owl Capital to negative, pointing to a surge in investor redemption requests during the first quarter, according to a report by Reuters.
The rating agency said the change applies to Blue Owl Credit Income Corp (OCIC), a $36bn fund, where withdrawal requests were notably higher than those seen across comparable strategies. Moody’s also highlighted that a large proportion of those requests came from a relatively small group of investors, indicating some concentration within the shareholder base.
The move comes amid broader strain in private credit markets, where rising redemption activity has prompted some managers to impose withdrawal limits. The trend has also contributed to more cautious lending conditions from banks toward the roughly $2tn sector.
Blue Owl recently confirmed it would restrict withdrawals from two of its vehicles following what it described as an unprecedented level of redemption requests in early 2026. Investors sought to redeem approximately 21.9% of shares in OCIC, although the firm said it expects to meet only 5% of those requests.
In communications related to a recent tender offer, the fund maintained that it remains well positioned to take advantage of current market conditions. It also noted that redemption requests account for less than 1% of total assets under management and that the vast majority of investors have not sought to exit.
Blue Owl has previously pushed back on negative sentiment to private credit, arguing that market perceptions are not aligned with the underlying performance of its portfolios.
Moody’s said that limiting redemptions would help contain near-term outflows, but warned that elevated withdrawal activity is likely to continue in the coming quarters. This could weigh on inflows and gradually erode the fund’s capital and liquidity strength.
Separately, Moody’s has downgraded its broader outlook for US business development companies, citing similar pressures from redemptions, rising leverage and more constrained access to financing markets.
Other parts of the market have faced comparable scrutiny. In March, S&P Global revised its outlook on a $33bn private credit fund managed by Cliffwater LLC to negative, also pointing to increased redemption requests.
