DBRS trims TriplePoint Venture Growth

DBRS said it downgraded TriplePoint Venture Growth BDC Corp.’s issuer and senior debt ratings to BBB (low) from BBB and revised the trend to stable from negative.

“The credit ratings downgrade reflects the operating performance challenges at TPVG with credit deterioration in the investment portfolio that has led to significant realized losses and erosion of net asset value (NAV). Additionally, gross leverage has been well above BDC peers for the past year, in part driven by compliance requirements associated with unfunded commitments to borrowers that are deemed to be ‘non-qualifying assets’ under Section 55(a) of the Investment Company Act of 1940, as amended (the 1940 Act),” DBRS said in a press release.

Balancing this, TPVG profits from its relationship with TriplePoint Capital LLC, which has long-standing relationships with key venture capital sponsors.

DBRS said it expects the company to lower its leverage in the near term.

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