Capital Southwest Receives Affirmed Investment Grade Rating from Fitch Ratings

Rhea-AI Summary

Capital Southwest (Nasdaq: CSWC), an internally managed business development company, has received an affirmation of its BBB- investment grade long-term issuer rating from Fitch Ratings, with a stable outlook. The rating agency also affirmed the company's senior secured debt rating of BBB.

The ratings affirmation is supported by several key factors, including Capital Southwest's focus on senior secured portfolios, diverse funding profile, robust asset coverage cushion, and consistent operating performance. This rating reinforces the company's strong position in providing flexible financing solutions to middle market businesses.

Positive

• Maintained BBB- investment grade rating from Fitch
• Senior secured debt rating affirmed at BBB
• Strong asset coverage cushion noted by Fitch
• Diverse funding profile recognized by rating agency
• Consistent operating performance acknowledged

Negative

• None.

News Market Reaction

+1.20%

1 alert

+1.20% News Effect

On the day this news was published, CSWC gained 1.20%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Fitch Ratings affirms BBB- long-term issuer rating with a stable outlook

DALLAS, July 02, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced that Fitch Ratings (“Fitch”) has affirmed Capital Southwest’s investment grade long-term issuer rating of BBB- with a stable outlook. Additionally, Fitch affirmed CSWC’s senior secured debt rating of BBB with a stable outlook. Factors cited by Fitch in support of its ratings include Capital Southwest’s senior secured portfolio focus, diverse funding profile, robust asset coverage cushion and consistent operating performance.

About Capital Southwest

Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.8 billion in investments at fair value as of March 31, 2025. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.

Forward-Looking Statements

This press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest, including, but not limited to, the statements about Capital Southwest's future performance and financial performance and financial condition. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; changes in the interest rate environment and its impact on our business and our portfolio companies; regulatory changes; tax treatment; our ability to operate Capital Southwest SBIC I, LP and Capital Southwest SBIC II, LP as small business investment companies; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy and its impact on our portfolio companies and our financial condition; an economic downturn and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us; the impact of supply chain constraints on our portfolio companies; and the elevated levels of inflation and its impact on our portfolio companies and the industries in which we invests.

Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2025 and any subsequent filings with the SEC, including the "Risk Factors" sections therein, for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

Investor Relations Contact:

Michael S. Sarner, President and Chief Executive Officer
214-884-3829

FAQ

What is Capital Southwest's (CSWC) current credit rating from Fitch?

Capital Southwest maintains a BBB- investment grade long-term issuer rating with a stable outlook from Fitch Ratings.

What is CSWC's senior secured debt rating?

Capital Southwest's senior secured debt is rated BBB with a stable outlook by Fitch Ratings.

What factors support Capital Southwest's (CSWC) investment grade rating?

Fitch cites senior secured portfolio focus, diverse funding profile, robust asset coverage cushion, and consistent operating performance as key factors supporting the rating.

What type of company is Capital Southwest (CSWC)?

Capital Southwest is an internally managed business development company (BDC) that provides flexible financing solutions for middle market business acquisitions and growth.