Fitch Ratings has changed its ratings outlook to negative for Goldman Sachs' private credit fund, Goldman Sachs BDC, the ratings agency said on Friday. In its post-market close announcement, Fitch maintained its current lower-investment grade rating of Goldman Sachs BDC but could downgrade the fund if it doesn't increase its asset cushion. "Fitch believes the asset coverage cushion is low given GSBD's elevated risk profile as evidenced by recent credit deterioration in the portfolio," Fitch analysts wrote. Investors have taken a closer look at Goldman Sachs BDC and other private credit funds known as business development companies (BDCs) that lend to middle-market companies, as advances in artificial intelligence threaten the business models of certain companies in the software sector. Goldman Sachs BDC saw an uptick in its loan portfolio's non-accrual rate, or the percentage of its loan holdings that are well behind on payments, the fund said in its first quarter earnings on May 8, noting a rise to 4.7% at amortized cost from 2.8% in its previous quarter.