Moody’s Creates Division to Research and Evaluate Private Loans

The rating agency Moody’s MCO is creating a division to research and evaluate private loans, the company said Monday.

The unit will be led by Ana Arsov, who will coordinate research and ratings initiatives in the area, Moody’s Investors Service said in a statement.

The global personal loan market accounts for about 12 percent of the alternative investments market, with more than $1.3 trillion in assets under management, investment firm BlackRock said in a recent report.

Private loans are largely buy-and-hold

investors such as pension funds, foundations and insurance companies, according to the report.

“The rapid growth of the private credit market in recent years has brought new challenges and opportunities for investors seeking fresh analysis from a trusted source,” said Michael West, President of Moody’s.

Moody’s said Arsov will join Simon Harris as head of the global Financial Institutions Group.

The Private Credit Group will have a team of more than 50 analysts in various regions covering private credit in institutions such as business development companies, collateralized loan obligations, insurance and asset management companies.

Moody’s rates approximately $70 trillion in debt securities across its four main rating groups: financial institutions, corporate finance, structured finance and global public, project and infrastructure finance.