BDCs Face New Headwinds but Limited Direct Exposure to Tariff Sectors
The recent escalation in the global trade war and resulting uncertainty across the market introduced additional headwinds for business development companies (BDCs) and private credit in the near term. Fitch expects additional non-accruals across BDC portfolios in 2025 given the continuation of elevated interest rates and the challenging economic backdrop, including impacts of tariffs on some portfolio companies.