S&P ups Allied Capital, withdraws ratings

Standard & Poor's said it raised its counterparty credit rating on Allied Capital Corp. to BBB from BB+, then withdrew the rating upon the completion of its acquisition by Ares Capital Corp. The agency also said it upgraded the rating on Allied's senior unsecured debt to BBB from BB.

Going forward, the agency said it will rate this debt under Ares.

The withdrawal follows the closing of its acquisition by Ares. Ares will retain its name, the agency said, and the combined entity will be headquartered in New York City.

S&P said the combined entity to continue to deleverage its balance sheet and rebalance its portfolio mix toward Ares' traditional, higher-yielding cash-generating securities.

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