NEW YORK--(BUSINESS WIRE)--On July 11, 2018, Kroll Bond Rating Agency (KBRA) assigned BBB- issuer and senior unsecured debt ratings with a Stable Outlook to Apollo Investment Corporation (“AINV” or “the Company”), a business development company (BDC) that focuses on providing senior debt to U.S. middle market companies. Management of the Company’s business and execution of operations is performed by an affiliate of Apollo Global Management, LLC (NYSE: APO), a global alternative asset management firm with $247 billion in assets under management.
The BBB- ratings reflect Apollo’s well-established franchise in middle market lending space, robust origination platform, experienced management team, staggered debt maturity schedule, prudent leverage, improving asset quality, and sound funding flexibility. The ratings also reflect AINV’s transition to a higher leverage range of 1.25x-1.40x from 0.65x-0.70x; which KBRA views as prudent, given the company’s portfolio de-risking towards senior secured first lien loans. The ratings are also supported by the broader Apollo Global Management platform, which provides extensive access to a global investment network and deal flow.
AINV’s ratings are constrained by the inherent risks associated with operating as a BDC such as distribution requirements that may limit financial flexibility and the illiquid nature of the Company’s portfolio. A further constraint on its ratings is AINV’s elevated exposure to equity positions, structured products, and unsecured debt relative to KBRA investment-grade rated peers.
The ratings were assigned using KBRA’s Global Finance Company Rating Methodology, published November 28, 2017.
To read the report, please click here.
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.