NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) has affirmed the issuer and senior unsecured debt ratings at BBB- and revised the outlook to negative from stable outlook on Medley Capital Corporation (NYSE: MCC) (“Medley Capital” or “the Company”), a Business Development Company (BDC) headquartered in New York, NY. Medley Capital Corporation is a publicly registered and traded BDC that commenced operations in January 2011.
The Negative outlook reflects the weakening of MCC’s asset quality, asset coverage and interest coverage metrics that have exceed KBRA’s expectations. Additionally, it is in KBRA’s view that MCC’s energy portfolio will remain under pressure leading to additional deterioration of key asset quality metrics for some time to come.
KBRA considers MCC’s core operating performance, liquidity and leverage utilization to be satisfactory and in-line with rating expectations. As a result, a revision to Stable outlook would likely occur if MCC’s asset quality metrics reverse and improve in line with its peers, particularly if non-accruals as percentage of portfolio improve materially and asset coverage strengthens.
The ratings were assigned using KBRA’s Finance Company Rating Methodology, published April 1, 2013.
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).