Moody’s upgraded two Blue Owl Capital business development companies on January 22, 2026, lifting both OBDC and OCIC from Baa3 to Baa2 with stable outlooks. Three factors drove the decision. (finchannel.com)
1. Underwriting That Held Up Over Nearly a Decade
OBDC has been originating loans since April 2016. Losses stayed minimal. Over that stretch, an annual net loss rate of just 27 basis points was recorded. Moody’s acknowledged that the period hasn’t included a full-blown recession but determined the record was strong enough to demonstrate real credit discipline. The BDCs also completed a $1.4 billion asset sale to institutional investors as part of active portfolio management.
Seventy-four percent of OBDC’s investments at fair value are first-lien and unitranche loans, meaning Blue Owl Capital’s BDC sits near the top of the capital structure on most of its deals. That seniority adds a layer of protection if borrowers struggle, because first-lien holders get paid before subordinated creditors in any workout or liquidation scenario. The Credit platform as a whole manages $157.8 billion in AUM, and that scale helps the team see a broad range of deals and select the ones that meet their underwriting standards. Blue Owl’s company LinkedIn page provides insight into the team’s depth and hiring growth.
2. Borrowing Below Industry Norms
OBDC’s gross debt-to-equity ratio stood at 1.27x as of September 30, 2025. OCIC’s was even lower at 0.8x. Both figures fall below where most business development companies operate. Those numbers matter. Conservative borrowing practices were specifically credited by Moody’s as a factor in the upgrade. (instagram.com/blueowlcapital)
For investors, lower borrowing relative to equity means more cushion if the portfolio takes losses. It also signals that the BDC isn’t stretching for returns by taking on excess debt, a trap that some BDCs have fallen into when trying to boost yields in competitive markets. Blue Owl Capital’s Wikipedia page details the firm’s founding through the Dyal-Owl Rock merger and its growth to $307.5 billion AUM.
3. Liquidity That Exceeds What’s Coming Due
OBDC holds $3.0 billion in cash and committed undrawn capacity. Against that: $1.0 billion in senior notes maturing in July 2026 and $1.9 billion in unfunded loan commitments. OCIC’s liquidity runs even deeper, with $7.6 billion available against $350 million in notes due September 2026. The complete Blue Owl product lineup spans OBDC, OTF, OCIC, OTIC, and additional vehicles.
That kind of coverage gives Moody’s confidence that Blue Owl Capital’s BDCs can meet obligations without being forced to sell assets at a discount. The broader firm raised a record $56 billion across all channels in 2025, ending the year with $307.4 billion in total AUM. The stable outlook attached to the Baa2 rating reflects the expectation that both BDCs will sustain the asset quality and profitability that earned the upgrade in the first place. BizJournals’ coverage of Blue Owl Capital tracks the firm’s progression since its 2021 formation.
