Moody's: Private credit faces 2028 refinancing test

Private credit is entering a critical period, according to Moody's Ratings Global Head of Private Credit, Marc Pinto. While the surge in AI infrastructure spending presents significant lending opportunities, underlying issues are surfacing within software-focused portfolios. Pinto anticipates that 2028 will be a pivotal year, as a substantial wave of debt refinancing is expected to reveal the true resilience of borrowers. This period will likely distinguish between companies that can successfully navigate the evolving economic landscape and those that struggle to meet their obligations.