S&P Global Ratings has revised its outlook on Oaktree Specialty Lending Corp. to stable from negative and affirmed its BB+ issuer credit rating and senior unsecured rating.
The ratings on Oaktree reflect the company's poorly performing legacy investments, according to S&P, offset by its low leverage and diversified funding profile.
The stable outlook reflects the expectation that Oaktree Specialty will operate with leverage of 0.70x to 0.85x in the long term.
The agency expects Oaktree to refinance its 2019 unsecured notes and anticipates that the company will continue to realize losses and operate with elevated nonaccruals over the next year.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.