DBRS gives Prospect Capital BBB

DBRS said it assigned a BBB (low) long-term issuer rating to Prospect Capital Corp. Simultaneously, DBRS assigned a long-term senior debt rating of BBB (low).

“The ratings reflect PSEC’s good franchise which is supported by a sound management team and established market presence over more than 20 years of operation. This franchise has been a key pillar to the company’s solid earnings track record and ability to develop a diverse funding profile. The ratings also consider the company’s appropriately managed capitalization,” DBRS said in a press release.

“Lastly, the ratings contemplate PSEC’s portfolio riskiness, given that a sizeable portion is comprised of subordinated investments, as well as the elevated portfolio concentration in key asset classes such as property REIT, consumer finance and structured investments that collectively accounted for nearly 42% of its investment portfolio at fair value (FV) at Dec.31,” the agency said.

The trend is stable.

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