Wells Fargo Downgrades Blackstone Secured Lending Fund (BXSL) to Equal Weight

Wells Fargo analyst Finan O'Shea downgraded Blackstone Secured Lending Fund (NYSE: BXSL) from Overweight to Equal Weight with a price target of $29.00.

The analyst comments "Our Overweight rating on BXSL hinged on its newer vintage portfolio and predominately 1L / unitranche portfolio, which were likely to show better-than-peer credit performance. Only recently has the BDC begun to show some cracks in credit, first with Benefytt Technologies, then WHCG Purchaser and SEKO Global. Another healthcare provider Navigator Acquiror has been marked down for four quarters in a row, suggesting some fundamental credit deterioration, while vet practice Snoopy Bidco has flipped in and out of PIK pay. Medallia, one of the largest BX BDC credits, was marked down to 95% of par this quarter despite tight spreads, and has paid some of its interest in PIK in every quarter for nearly three years since origination. Bloomberg reported that lenders allowed the business to PIK the loan two years longer than originally anticipated."

For an analyst ratings summary and ratings history on Blackstone Secured Lending Fund click here. For more ratings news on Blackstone Secured Lending Fund click here.

Shares of Blackstone Secured Lending Fund closed at $32.58 yesterday.

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