S&P lowers Prospect Capital view to negative

Standard & Poor's said it revised the outlook on Prospect Capital Corp. to negative from stable.

The agency also said it affirmed its BBB counterparty credit rating.

Although the company's net investment income has increased significantly since 2009, it has not kept pace with the company's dividend distributions, S&P said.

The rating is based on the company's conservative underwriting process, diversified funding base, strong earnings growth since its public listing in 2004 and prudent use of leverage, the agency said.

The rating also factors in the company's history of primarily investing in senior or secured loans in middle-market companies, S&P said.

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