S&P rates Prospect Capital preferreds BB

S&P said it assigned its BB issue rating to Prospect Capital Corp.’s proposed issuance of up to $250 million in perpetual preferred stock.

“The preferred stock is rated two notches below the BBB- issuer credit rating on PSEC to reflect subordination risk and the risk of deferability of dividends (partial or untimely payment of dividends) on preferred stock,” S&P said in a press release.

The company plans to use the proceeds for balance sheet liquidity, including repaying credit facility debt and making long-term investments.

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