S&P affirms Prospect Capital

S&P said it affirmed its BBB- issuer credit rating on Prospect Capital Corp. and removed the ratings from CreditWatch, where they were placed on April 3 with negative implications. The outlook is negative.

S&P affirmed and removed from CreditWatch its ratings on the company after the board of directors of Prospect Capital determined to no longer modify the asset coverage ratio test applicable to the company. As a result, the company's asset coverage ratio test remains and is expected to remain at 200% instead of 150%.

“We had placed the ratings on CreditWatch with negative implications after the PSEC board of directors approved decreasing the asset coverage ratio test to 150% from 200%, which would have been effective March 25, 2019,” S&P said in a news release.

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