KBRA’s Business Development Company Ratings Compendium – 2Q26 and 1H26 Performance Analysis
NEW YORK, September 03, 2026–(BUSINESS WIRE)–KBRA releases its Business Development Company Ratings Compendium, an analysis of the quarter ended June 30, 2026 and the first half of 2026.
KBRA’s Examination of BDC Performance and Credit Quality
The 2Q26 and 1H26 performance of KBRA’s rated business development companies (BDCs) is examined in this quarter’s Compendium. The focus is on credit quality, net asset value (NAV) volatility, and resulting leverage. The impact of emerging headwinds on the operating performance of the sector, the addition of two new BDCs to KBRA’s rated universe, and the increase in non-accrual investments are all covered in this detailed report.
Key Takeaways from the BDC Performance Report
The BDC Performance Report includes several key takeaways:
- Credit stress became more visible in 2Q26, particularly among non-perpetual-life BDCs.
- Valuation pressure moderated significantly after 1Q26.
- Net Interest Income (NII) remains under pressure due to lower base rates, tighter spreads, and subdued M&A and refinancing activity.
- Leverage trends diverged by structure.
For a more comprehensive analysis, click here to view the report.
About KBRA
KBRA is a major credit rating agency registered in the U.S., EU, and the UK. It’s recognized as a Qualified Rating Agency in Taiwan and is a Designated Rating Organization for structured finance ratings in Canada.
Contacts
Teri Seelig, Managing Director
Email: teri.seelig@kbra.com
Kevin Kent, Director
Email: kevin.kent@kbra.com
Business Development Contact
Constantine Schidlovsky, Senior Director
Email: constantine.schidlovsky@kbra.com
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