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S&P Global expecting increase in debt rating business

S&P Global Inc is expecting to see an increase in revenue from rating private debt financings as investors look for more information about the risks their money managers are taking on, according to a report by Bloomberg.

The report cites Bloomberg’s Chief Financial Officer Ewout Steenbergen as saying that with Preqin data showing that the private credit market has grown from $500bn at the end of 2015 to £1,6tn today, and with most of that growth coming in terms of past few years, most direct lending investors have yet to experience anything other than positive returns. When LPs see losses, according to Steenebergen, they are likely to demand more information from their GPs.

“There will be much more demand from the LPs to say, ‘we want to really understand what is the risk that you have taken in your portfolio,’ and someone needs to do that objectively,” Steenbergen said.

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