KBRA Releases Research – Business Development Company (BDC) Ratings Compendium: March 2020 and COVID-19 Update

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases its Business Development Company (BDC) Ratings Compendium, which analyzes the quarter ended March 31, 2020 results in addition to the impact of the coronavirus (COVID-19) on BDCs within the KBRA universe.

Themes discussed in the Compendium include:

  • As expected during the quarter ended March 31, 2020 (1Q 2020), mark-to-market portfolio valuation declines ranged between approximately -3% and -10%, which mainly reflected credit spread widening in March.
  • Several BDCs received shareholder approval for reduced regulatory asset coverage requirements following 1Q, which greatly improved asset coverage cushions.
  • The majority of BDCs had adequate available credit lines to cover available unfunded commitments.
  • KBRA expects non-accruals to increase in 2Q 2020 as the economic fallout from COVID-19 continues; however, the totality of portfolio markdowns related to COVID-19 remains uncertain.
  • KBRA expects that 2Q 2020 asset sales, loan paydowns and tighter credit spreads will help deleverage the balance sheet.

Click here to view the report.

About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe Limited is located at 6-8 College Green, Dublin 2, Ireland.

Contacts

Analytical Contacts
Teri Seelig, Senior Director
+1 (646) 731-2386
tseelig@kbra.com

Boris Alishayev, Senior Director
+1 (646) 731-2484
balishayev@kbra.com

Mike Dodge, Director
+1 (646) 731-3349
mdodge@kbra.com

Marjan Riggi, Senior Managing Director
+1 (646) 731-2354
mriggi@kbra.com

Business Development Contact
Nish Kumar, Senior Director
+1 (646) 731-3372
nkumar@kbra.com

Contacts

Analytical Contacts
Teri Seelig, Senior Director
+1 (646) 731-2386
tseelig@kbra.com

Boris Alishayev, Senior Director
+1 (646) 731-2484
balishayev@kbra.com

Mike Dodge, Director
+1 (646) 731-3349
mdodge@kbra.com

Marjan Riggi, Senior Managing Director
+1 (646) 731-2354
mriggi@kbra.com

Business Development Contact
Nish Kumar, Senior Director
+1 (646) 731-3372
nkumar@kbra.com