S&P Global Ratings has downgraded Arlington, Va.-based Capital Impact Partners' issuer credit rating to A+ from AA- with a negative outlook.
The downgrade was driven by company's strategy of growing its loan balance by incurring more debt, which has caused loan balance growth to outpace the increases in net assets, the rating agency said. Overall, the rating reflects Capital Impact's specific credit strengths including its strong history of loan performance, diverse asset base and proactive management of its loan portfolio.
The negative outlook is due to S&P Global Ratings' view that the company's strategy will likely result in lower capital adequacy levels.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
