S&P Global Ratings withdrew its BB+ issuer credit rating on Solar Capital Ltd. as requested by the business development company. The outlook on the rating was stable at the time of the withdrawal.
On Aug. 7, a day before the rating was withdrawn, S&P lowered both the company's issuer credit rating and senior unsecured debt rating to BB+ from BBB- after the company's board approved the reduction of the company's asset coverage requirement to 150% from 200%. The company will target 0.90x to 1.25x debt-to-equity, operating at a substantial cushion to the regulatory limit.
According to the rating agency, the lower asset coverage requirement puts the anchor for Solar Capital at "bb+" which is the rating agency's starting point for ratings on business development companies that adopt the lower asset coverage requirement.
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.