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5 年前
TEXT-Fitch expects to rate Solar Capital notes 'BBB-'
2012年11月9日 / 下午5点53分 / 5 年前

TEXT-Fitch expects to rate Solar Capital notes 'BBB-'

Nov 9 - Fitch Ratings expects to rate Solar Capital Ltd.'s $100
million senior unsecured notes 'BBB-'. The notes are expected to mature in 2042.

Fitch does not believe there will be a material impact on the company's leverage
levels as a result of the issuance, as proceeds will primarily be used to repay
borrowings on secured credit facilities. Leverage, as measured by
debt-to-equity, was .28x at Sept. 30, 2012. Solar's leverage is low relative to
the BDC peer average of 0.55x as of 2Q'12, offset in part by higher portfolio
concentration levels.

RATING DRIVERS AND SENSITIVITES

Solar currently has a Stable Rating Outlook, which reflects Solar's low
leverage, experienced management team, low non-accrual levels, continued
consistency in operating performance, and adequate liquidity.

Negative rating actions would be driven by a decline in operating performance,
excessive realized portfolio losses, an increase in non-accrual levels, and/or
weaker cash earnings coverage of the dividend. Additionally, negative rating
actions pertaining to the unsecured notes would be driven by a significant shift
in funding mix to secured debt, which would weaken the recovery prospects of the
unsecured debt.

Fitch believes the potential for positive rating actions is relatively limited
over the near term given Solar's limited funding flexibility, relatively short
operating history, untested access to the public equity markets, investment
portfolio concentrations, and equity concentration following the
recapitalization of DSW Group, Inc.

Headquartered in New York, NY, Solar is an externally managed business
development company, founded in August 2006. As of Sept. 30, 2012 the company
had investments in 41 portfolio companies amounting to approximately $1.17
billion.

Fitch expects to assign the following rating:

Solar Capital Ltd.:
-- $100 million Senior Unsecured Notes 'BBB-'.

Existing ratings for Solar are as follows:

Solar Capital Ltd
--Long-term Issuer Default Rating (IDR) 'BBB-';
--Secured Debt 'BBB-'

The Rating Outlook is Stable.

Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
-- 'Global Financial Institutions Criteria' (Aug. 15, 2012);
-- 'Investment Manager and Alternative Funds Criteria' (Dec. 23, 2011).

Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
Investment Manager and Alternative Funds Criteria

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