Kroll Bond Rating Agency Affirms BBB+ Ratings for Prospect Capital Corporation

Kroll Bond Rating Agency (KBRA) has affirmed the issuer and senior unsecured debt ratings of BBB+ with a stable outlook to Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect” or “the Company”), a Business Development Company (BDC) based in New York, NY. Prospect completed its Initial Public Offering (IPO) in July 2004 and its stock trades on the NASDAQ Stock Market under the ticker symbol "PSEC."

The affirmed BBB+ rating of Prospect Capital Corporation reflects the company’s focus on senior secured debt investments, adequate leverage metrics that are below the BDC regulatory limits and robustness of its credit originations and monitoring. The rating is further supported by Prospect’s proven management expertise in middle market lending. These strengths are balanced by the potential risks related to PSEC’s more volatile performance embedded in equity exposures within its “buyout” portfolio, CLO investments, and slightly deteriorating asset quality.

The ratings were assigned using KBRA’s Finance Company Rating Methodology, published April 1, 2013.

To view the report, please click here.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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