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Moody's Downgrades FS KKR to Junk Status Amid Losses

3/24/2026

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Story summary
  • Moody's downgraded FS KKR Capital Corp to junk status due to rising bad loans, with 5.5% non-accruals.
  • FS KKR Capital Corp's shares fell 4% after the downgrade and have fallen about 30% in 2025.
  • The fund posted a Q4 2025 net loss of $114 million and net income of $11 million for 2025.
  • A spokesperson for FS KKR Capital Corp said the fund remains well-positioned to navigate the market.