DBRS revises Owl Rock Core to positive

DBRS, said it revised the trend to positive from stable and confirmed the long-term issuer and long-term senior debt ratings of Owl Rock Core Income Corp. at BBB (low).

The revision of the trend from stable to positive and confirmation of the ratings are supported by Orcic’s substantial growth over the last year, in line with expectations, combined with the broadening and deepening of its funding and improvement in potential earnings power through its rotation into private credit assets,” DBRS said in a press release.

The agency noted that Orcic’s investment portfolio rocketed to $8.5 billion and equity of $3.9 billion from an investment portfolio at the second quarter of 2021 of $420.7 million and equity of $209.8 million.

“The volatility in the fixed income markets has constrained near-term earnings as unrealized losses were a drag on earnings in 1H22. However, Orcic has managed to lower its overall exposure to broadly syndicated loans (BSLs), which we estimate based on level 2 assets, to approximately 14% at 2Q22, which it uses for liquidity purposes to meet potential share repurchase requests. We also expect most performing credit assets to return to par over the average holding period despite the more challenging macroeconomic environment,” DBRS said.

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