Prospect Capital’s Credit Ratings Reaffirmed Investment Grade by Morningstar DBRS with Stable Trend
Rhea-AI Summary
Prospect Capital (NASDAQ: PSEC) has received a reaffirmation of its investment grade issuer and long-term senior debt credit ratings at BBB(low) from Morningstar DBRS, with a revised trend of Stable.
The company highlights its strong business profile, including:
- Over $21 billion invested across 400+ investments
- $4.7 billion in cumulative principal bond repayments
- $2.1 billion credit facility with 48 institutional banks
- 0.40x debt to equity leverage
- 0.4% nonaccruals
- 13% unlevered investment level gross cash internal rate of return for exited investments
- Less than 1% book to look ratio from over 3,000 annual origination opportunities
The company maintains a majority senior secured loan book and reports strong counterparty relationships and high employee ownership.
Positive
- Investment grade credit rating reaffirmed at BBB(low) with Stable outlook
- Low debt to equity ratio of 0.40x
- Strong portfolio performance with 13% unlevered IRR on exited investments
- Low nonaccrual rate of 0.4%
- Substantial credit facility of $2.1 billion with broad banking support
- Conservative origination with <1% book to look ratio
Negative
- None.
News Market Reaction
On the day this news was published, PSEC declined 1.56%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
NEW YORK, March 28, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect", “our”, or “we”) today announced that Morningstar DBRS ("DBRS") has reaffirmed Prospect’s investment grade issuer and long term senior debt credit ratings at BBB(low), and assigned a revised trend of Stable.
"We are very pleased that Morningstar DBRS, which has rated Prospect for many years, has reaffirmed our investment grade credit ratings," said Grier Eliasek, President and Chief Operating Officer at Prospect.
“Our strong business profile is supported by a multi-decade track record, over
"With low 0.40x debt to equity leverage, high employee ownership, strong counterparty relationships, a majority senior secured loan book, low
"Prospect Capital was recently named ‘One of the Best Places to Work in the Private Capital Industry’ by Mergers & Acquisitions, with our world-class team deserving the credit for delivering these positive results over many years," said Mr. Eliasek.
About Prospect Capital Corporation
Prospect is a business development company lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.
Internal Rate of Return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.
For further information, contact:
Grier Eliasek, President and Chief Operating Officer
grier@prospectcap.com
Telephone (212) 448-0702
FAQ
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