Cliffwater Private Credit Fund’s Outlook Cut to Negative by S&P

S&P Global Ratings lowered its outlook on Cliffwater LLC’s flagship private credit fund to negative from stable, citing elevated redemption requests that risk putting pressure on its liquidity.

The roughly $32 billion Cliffwater Corporate Lending Fund’s decision to meet 7% of withdrawal requests in the first quarter was higher than the 5% minimum, and the second quarter in a row it topped that level, S&P said in a report Wednesday. Analysts warned if that “were to constitute the new norm and not the exception,” it could strain the fund and potentially spur a downgrade.