DBRS has assigned a long-term issuer rating of BB (low) to Crown Capital Partners Inc.
The trend on the rating is stable.
DBRS' rating reflects the company's business model of being a niche player in the commercial lending space with a solid track record with minimal credit losses. The rating agency also notes that the company has an experienced senior management team that established a well-articulated strategy for the company.
However, the rating agency believes that these positive factors are tempered by Crown Capital Partners' lack of scalability and significant concentration in its portfolio. Additionally, the company's relatively high dividend payout results in lower retention of earnings, limiting its ability to grow capital organically, the rating agency said.