NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) released a comment on Medley Capital Corporation’s (NYSE: MCC) first quarter earnings results. The comment makes the following key points:
- Leverage on a net debt-to-equity basis (excluding SBA debt) was unchanged at 0.73x between September and December 2015.
- Non-accrual balances doubled to 4.2% from previous quarter levels.
- At December 31, 2015, approximately 5.1% of Medley’s $1.1 billion portfolio was invested in companies with direct oil and energy exposure.
- Medley has a well staggered and diversified funding profile, with no debt maturities during the next year.
- Financial flexibility is constrained given the Company’s limited access to external equity capital. As of February 17, 2016, MCC’s stock was trading at a 40% discount to its December 31, 2015 net asset value.
- The company has a strong liquidity position with $700 million in unencumbered assets, $24.1 million in cash, and $254.3 million in undrawn credit facilities.
- KBRA assigned an issuer and senior unsecured debt rating of BBB- with a stable outlook for Medley Capital Corporation on December 14th, 2015.
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).