Research Update: Blackstone Secured Lending Fund Outlook Revised To Positive On Steady Investment Performance; 'BBB-' Ratings Affirmed

Compared with other publicly traded business development companies, Blackstone Secured Lending Fund (BXSL)--in its relatively short operating history--has maintained steady operating results, a diversified funding profile, financial flexibility, and ample liquidity to meet its operational needs. As of year-end 2024, BXSL's liquidity of $2.4 billion covered its unfunded commitments of $1.7 billion. Additionally, BXSL's capitalized payment-in-kind interest was 6.3% of gross investment income and loans on nonaccruals were 0.3% of total loans at cost. Both metrics are below the publicly rated peer average. We revised our outlook on BXSL to positive from stable and affirmed our 'BBB-' long-term issuer credit and senior unsecured debt ratings. The positive outlook indicates that we could raise the ratings over the next 12-24 months

...- Compared with other publicly traded business development companies, Blackstone Secured Lending Fund (BXSL)--in its relatively short operating history--has maintained steady operating results, a diversified funding profile, financial flexibility, and ample liquidity to meet its operational needs. - As of year-end 2024, BXSL's liquidity of $2.4 billion covered its unfunded commitments of $1.7 billion. Additionally, BXSL's capitalized payment-in-kind interest was 6.3% of gross investment income and loans on nonaccruals were 0.3% of total loans at cost. Both metrics are below the publicly rated peer average. - We revised our outlook on BXSL to positive from stable and affirmed our '###-' long-term issuer credit and senior unsecured debt ratings. - The positive outlook indicates that we could raise the ratings over the next 12-24 months if BXSL maintains ample liquidity, leverage below 1.25x, steady investment portfolio performance, consistent funding, and financial flexibility....

Research Update