Fitch rates Owl Rock Capital III BBB-

Fitch Ratings said it assigned an expected long-term issuer default rating of BBB- to Owl Rock Capital Corp III. Concurrently, Fitch gave an expected rating of BBB-to ORCC III's secured debt and planned unsecured debt issuance.

The expected long-term IDR reflects ORCC III's strong management team, first-lien focus, relatively strong credit performance amongst business development companies (BDCs) managed by Owl Rock, appropriate asset-coverage cushion, solid liquidity given undrawn capital commitments and Fitch's expectations that unsecured debt will increase to over 20% of total debt with the proposed issuance and to at least 35% over the outlook horizon,” the agency said in a press release.

However, Fitch noted that ORCC III’s elevated growth over a short operating history, has translated into outsized portfolio concentrations, above-average exposure to paid-in-kind income and its largely secured funding profile.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.