Fitch: Ares Capital convertibles BBB

Fitch Ratings said it expects to rate Ares Capital Corp.'s $250 million convertible notes BBB.

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 expected rating is equalized with the ratings assigned to Ares' existing senior unsecured debt as the new notes will rank equally in the capital structure. The equalization of the unsecured ratings with the secured debt rating reflects Ares' relatively low leverage, its focus on senior debt investments, and Fitch's expectation that proceeds from the issuance will be used to repay a portion of secured debt outstanding, thus increasing the amount of unsecured funding in the capital structure.

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