Focus: Rating firms cautious ratifying some private credit loans

May 28 (Reuters) – Banks and insurers are making more requests to U.S. credit agencies for ratings on their risky loans to private equity funds that are secured against the value of their portfolio investments and cash flows that come from them.

So far, the response from the agencies including the top 3 – S&P (SPGI.N), opens new tab, Moody’s and Fitch – has been cautious because the valuation of the assets backing the loans are difficult to assess as they are owned by an opaque investor base.