MSCI and Moody’s have announced plans to provide independent risk assessments for private credit investments.
In recognition of the evolution of private markets, it is acknowledged that investors need consistent standards and tools to help them compare and communicate the risk of their investments.
Moody’s plans to extend its EDF-X models – which provide risk insights using credit models – into MSCI’s private credit solutions data. This will produce third-party risk assessments for private credit investments at the underlying company and facility level.
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“As the private credit market evolves, investors are looking for trusted independent assessments to help benchmark credit risk and inform investments and monitor portfolios,” said Rob Fauber, president and chief executive officer of Moody’s.
“Our partnership with MSCI will play a critical role in providing these insights, helping market participants make informed decisions.”
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“The rapid growth of private credit continues to transform the global investment landscape while highlighting the need for increased transparency, consistent standards and independent risk assessment,” said Henry A. Fernandez, chairman and CEO of MSCI.
“We are proud to partner with Moody’s to deliver innovative solutions that can help drive greater clarity and confidence.”
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