KBRA releases research that explores the credit implications of artificial intelligence (AI) in ABS venture debt, highlighting both emerging risks and the extent to which they remain contained.

AI is an emerging area of focus for private credit markets, particularly for lenders with exposure to software and technology borrowers. AI-related disruption is expected to unfold gradually but is already influencing lender behavior, borrower performance, and investor sentiment, as noted in KBRA’s Private Credit: Deep Dive on AI and Software. KBRA is monitoring potential implications for ABS venture debt transactions (which also include health care and other relatively sector-specific ABS transactions), given the presence of software and technology companies in venture lending portfolios, where cash flows depend on borrower performance, valuation, and refinancing capacity.

Click here to view the report.

Recent Publication

• Private Credit: Deep Dive on AI and Software

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1014211

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