Blackstone Secured Lending Fund unsecured notes draw Fitch 'BBB(EXP)' rating

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Blackstone fund Fitch 'BBB' rating

Highlights

Fitch assigned a 'BBB(EXP)' expected rating to Blackstone Secured Lending Fund's proposed unsecured notes, matching BXSL's existing Long-Term Issuer Default Rating and Stable Outlook.
BXSL's rating reflects strengths including focus on first lien investments, low leverage, robust liquidity, and support from Blackstone's investment platform, with the new issuance aimed at refinancing secured borrowings.
Fitch highlights risks from unsecured debt maturities in 2026 and 2027, a competitive BDC sector, and AI-driven disruption risk for software companies, which comprised 20.5% of BXSL's portfolio at end-2025.

Proposed debt issue and rating rationale

As reported by Fitch Ratings, the proposed unsecured notes for Blackstone Secured Lending Fund, or BXSL, have received an expected rating of 'BBB(EXP)', in line with the company's existing Long-Term Issuer Default Rating of 'BBB' and Stable Outlook. Fitch says the new notes rank equally with Blackstone's outstanding senior unsecured debt, supporting the same rating level for the planned issuance.

Fitch says BXSL's credit profile benefits from its focus on first lien investments, relatively low leverage, funding flexibility, sound liquidity and solid dividend coverage. The agency also points to the company's relationship with Blackstone, whose investment platform and deal flow are viewed as a support for BXSL's portfolio quality and operating position.

The rating action does not affect Blackstone Inc., which keeps its 'A+' rating and Stable Outlook. Fitch says the planned issuance should largely refinance secured borrowings rather than add net leverage, limiting the impact on the balance sheet.

Funding risks and sector pressures in 2026

Fitch says BXSL still faces constraints from unsecured debt maturities scheduled in 2026 and 2027, as well as from the scale of Blackstone's broader business development company platform. In the agency's view, the size of that platform could test operational flexibility and may limit how much unsecured financing capital markets are willing to provide if investors assess exposure across the full Blackstone BDC group.

The agency also says the BDC sector continues to face a competitive underwriting environment, weaker earnings and dividend coverage metrics, and pressure on asset quality in 2026. Fitch adds that AI presents disruption risk for software companies, which accounted for about 20.5% of BXSL's portfolio at fair value at the end of 2025.

Fitch says the Stable Outlook assumes BXSL maintains its first lien strategy, keeps leverage within its target range, preserves unsecured debt above 40% of total debt and retains sufficient liquidity. A downgrade could follow from weaker portfolio quality, higher leverage, rising non-accruals, losses, weaker dividend coverage, a lower unsecured funding mix or impaired liquidity, while an upgrade would likely require continued strong underwriting performance, solid operating results and unsecured debt sustained at or above 50% of total debt.

Our earlier report on Liberty Mutual Group’s planned senior unsecured notes due 2036 outlined how the insurer secured a stable long-term issue credit rating for the $750 million deal while its existing issuer and subsidiary ratings remained unchanged. We noted that the agency expected leverage to stay around 20% with strong interest coverage, and that the proceeds were intended for general corporate purposes without changing the broader view of the company’s debt-servicing capacity.

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