Moody’s changes Ares outlook to positive

Moody’s Investors Service said it changed its outlook for Ares Capital Corp. to positive from stable and affirmed its Baa3 ratings.

“The positive outlook reflects that while asset risks for the sector have risen, ARCC's portfolio will likely be resilient, supported by sound underwriting, risk management and asset selection. The outlook also incorporates Moody's expectation that ARCC will continue to generate solid profitability, manage leverage within its target range of 0.9x – 1.25x debt-to-equity with a solid cushion to its asset coverage ratio minimum of 150%, and continue to manage funding and liquidity in line with historical practices,” the agency said in a statement.

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