Kroll Bond Rating Agency placed Hercules Capital Inc.'s BBB+ issuer and senior unsecured debt ratings on Watch Developing following former CEO Manuel Henriquez's indictment in an alleged bribery scheme to secure students' admission to top U.S. universities.
Henriquez stepped down as chairman and CEO on March 13 in response to the indictment.
The Watch Developing status reflects potential outcomes of Henriquez's indictment and uncertainty surrounding his ability to continue to lead Hercules Capital, the rating agency said. It also noted the company's reliance on Henriquez, who has been responsible for its solid growth and performance.
Kroll in September 2018 affirmed the BBB+ company's issuer and senior unsecured debt ratings, with a stable outlook.