MSCI and Moody’s Forge Strategic Alliance to Enhance Private Credit Risk Assessment

Apr 21, 2025

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MSCI and Moody’s Forge Strategic Alliance to Enhance Private Credit Risk Assessment

In a significant move to bolster transparency and consistency in the private credit market, MSCI Inc. (NYSE: MSCI) and Moody’s Corporation (NYSE: MCO) have announced a strategic partnership aimed at delivering independent risk assessments for private credit investments at scale.

“As the private credit market continues to evolve and grow, the need for consistent standards and better tools has become essential for investors to assess, compare and communicate the risk of their investments,” the companies stated in their joint announcement.

MSCI brings to the table a comprehensive universe of high-quality private capital data, sourced from original documents provided by managers, including data on more than 2,800 private credit funds and over 14,000 individual underlying companies. Moody’s complements this with its flagship EDF-X models, delivering risk insights using best-in-class credit models and early warning signals to help investors assess the financial strength of public and private companies globally.

The collaboration aims to produce proprietary third-party risk assessments for private credit investments, availablem at the underlying company and facility level using transparent metrics.

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Henry A. Fernandez, Chairman and CEO of MSCI, highlighted the transformative nature of the private credit market: “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. We are proud to partner with Moody’s to deliver innovative solutions that can help drive greater clarity and confidence.”

It’s noteworthy that this solution will be distinct from the services provided by Moody’s Ratings, the credit rating agency, to the issuers in the private credit market.

This partnership signifies a pivotal step in addressing the complexities of the private credit sector, offering investors enhanced tools for risk assessment and decision-making.