...Platform Affiliation Benefits: Blue Owl Capital Corporation II's (OBDC II) ratings reflect its access to investment resources from Blue Owl Capital Inc. (Blue Owl; BBB+/Stable), an experienced management team, solid asset quality, above average underlying portfolio company EBITDA, below average leverage, sufficient funding flexibility and adequate liquidity. Inability to Access Equity Markets: Rating constraints include the inability for OBDC II to access the equity markets for capital barring a liquidity event, the potential negative effects of tenders on leverage and liquidity, a below average asset coverage cushion and above average exposure to PIK income. Fitch believes business development companies (BDCs) will face a competitive underwriting environment, weaker earnings and dividend coverage, and the potential for further asset quality deterioration in 2025. Solid Asset Quality: Nonaccrual investments ticked up amid the rising rate environment but remained low as of YE24, amounting...
