Credit Estimate Snapshot: Private Credit Activity Cooling with Credit Quality Moving Toward B (low)

Quarterly Highlights
-- In the first quarter of 2025, we issued CEs for 99 new borrowers and performed refreshes for 191 existing CE borrowers, reflected a slowdown in new credit activity while refreshes maintained at a similar pace to Q1 2024.
-- The credit quality of new borrowers of CEs continue to shift towards B (low) and CCC (high) from B.
-- Out of the 191 existing borrowers we have reviewed this quarter with a previously active CE, there were 26 improvements, 34 deteriorations, and 131 confirmations.
-- Healthcare and Consumer Cyclical sectors have the highest percentage of CCC borrowers ~ 20%.
-- About 23% of CE borrowers have loans maturing in 2025 and 2026 with 36% of them falling in CCC categories.