Fitch rates Ares Capital convertibles BBB

Fitch Ratings said it assigned a rating of BBB to Ares Capital Corp.'s $230 million issuance of 4.75% unsecured convertible notes.

The notes will mature in January 2018.

Ares Capital has a long-term issuer default rating of BBB, senior secured debt rating of BBB and senior unsecured debt rating of BBB.

Allied Capital Corp. has a senior unsecured debt rating of BBB.

The outlook is stable.

Fitch said it does not believe there will be a material impact on the company's leverage levels as a result of the issuance, as proceeds will largely be used to repay borrowings on secured credit facilities.

The stable outlook on the company reflects an expectation for continued consistency in core operating performance, the agency said, and the maintenance of strong liquidity, relatively conservative balance sheet leverage and solid cash earnings coverage of the dividend.

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