Moody’s Ratings revised the outlook for Blue Owl Credit Income Corp (OCIC) to negative from stable. The fund manages $36 billion in assets. First-quarter redemption requests were significantly higher than those of peers. A limited number of investors drove the majority of these requests, creating concentration risk.
Blue Owl will honor 5% of withdrawal requests this quarter. Moody’s expects high redemptions to continue. New inflows are projected to slow. These factors may pressure the fund’s capital and liquidity in future quarters.
The action follows a broader shift in the private credit sector. Moody’s previously lowered its outlook for U.S. business development companies (BDCs) to negative. That revision cited rising redemptions, increased leverage, and tightening access to funding markets.