On January 22, 2026, Moody’s Ratings raised the senior unsecured ratings for two Blue Owl Capital business development companies, Blue Owl Capital Corporation (OBDC) and Blue Owl Credit Income Corp. (OCIC), from Baa3 to Baa2. Both outlooks moved to stable from positive (finchannel.com).
What Baa2 Means
A Baa2 rating sits firmly within Moody’s investment-grade range, two notches above the Baa3 floor. It’s a rare distinction. Few business development companies hold this rating. For BDCs, which borrow to fund their lending operations, a higher credit rating translates directly into lower borrowing costs and broader access to institutional debt markets. Lower funding costs mean wider spreads on the loans a BDC originates, and those wider spreads can flow through to better returns for shareholders over time. The upgrade was also applied to the senior unsecured ratings from Blue Owl Capital Corporation III that OBDC had assumed. Blue Owl Capital Corporation’s investor relations page provides additional detail on the BDC portfolio and its $16.5 billion fair value.
The Rationale Behind the Upgrade
Moody’s cited “strong management by an affiliate of Blue Owl Capital” as a key factor, along with disciplined underwriting and risk management practices. OBDC has operated since April 2016, recording an annual net loss rate of just 27 basis points over that nearly decade-long stretch. Blue Owl Capital’s Credit platform manages $157.8 billion in AUM, making it the firm’s largest business segment. The company’s formation through the Dyal-Owl Rock merger in 2021 brought together complementary lending and GP capital capabilities.
On the balance sheet side, OBDC carried a 1.27x gross debt-to-equity ratio as of September 30, 2025. OCIC’s ratio sat at 0.8x. Both figures fall below standard BDC debt levels, which Moody’s credited as evidence of conservative borrowing practices. That discipline hasn’t wavered even as the firm scaled its Credit platform to $157.8 billion. First-lien and unitranche loans make up 74% of OBDC’s investments at fair value, a senior position in the capital structure that reduces loss exposure. (instagram.com/blueowlcapital)
Liquidity Buffers
OBDC held $3.0 billion in cash and committed undrawn capacity, set against $1.0 billion in senior notes due July 2026 and $1.9 billion in unfunded loan commitments. OCIC’s position was even more padded: $7.6 billion in cash and undrawn capacity against $350 million in senior notes due September 2026. Those buffers mean neither BDC faces near-term pressure to sell assets or refinance at unfavorable terms, which is precisely the kind of balance sheet strength Moody’s rewards with a stable outlook. Both BDCs can continue originating new loans and pursuing attractive opportunities without hoarding cash to cover upcoming maturities. The OWL listing on Yahoo Finance shows a 10.87% dividend yield that reflects this financial discipline.
