Moody's gives Owl Rock Capital Baa3

Moody's Investors Service said it gave a first-time Baa3 long-term issuer rating to Owl Rock Capital Corp. III. As of Sept. 30, ORCC III had $1.9 billion in investments, up from $427 million as of year-end 2020.

“ORCC III's Baa3 long-term issuer rating reflects the benefits to creditors from its strong capitalization and largely secured investment portfolio with a high proportion of first-lien loans (82% of investments as of Sept. 30, 2021), which Moody's expects will exhibit lower fair value and earnings volatility compared to more junior investments. ORCC III has a net debt-to-equity target of 0.9x –– 1.25x (0.9x at Sept. 30, 2021), which translates to an asset coverage ratio cushion of at least 20%, based on a minimum regulatory-required asset coverage ratio of 150%,” the agency said in a press release.

The outlook is stable.

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