Moody’s, KBRA Say Asset-Based Finance Will Drive Private Credit

Asset-backed finance will be a key engine for private credit growth this year, as demand for funding in capital intensive sectors exceeds what traditional banks have the risk appetite to provide, according to credit ratings agencies.

Lending secured by assets and repaid from cashflows is becoming “the new frontier for private credit,” Marc Pinto, the global head of private credit at Moody’s Ratings, said as his firm released its 2026 outlook for the industry. Kroll Bond Rating Agency also noted the “significant growth” opportunity that asset-based finance poses for private credit in its annual report about the market released Wednesday.