| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for MidCap Financial Issuer Trust > News item |
S&P assigns MidCap Financial BB-, notes B+
S&P said it assigned its BB- issuer credit rating to MidCap Financial Issuer Trust and a B+ debt rating to its company's proposed sale of $825 million of senior unsecured notes due 2028.
Concurrently, the agency gave a BB- issuer credit rating to MidCap Financial Holdings Trust and a B debt rating to its subordinated term loans due 2026.
Our BB- issuer credit ratings on MidCap FIT and MidCap Financial Holdings Trust balance the risks associated with middle-market leveraged lending and encumbered balance sheets with the group's highly experienced management team, strong underwriting record, and broad and diverse sources of funding. MidCap FIT is a newly formed intermediate holding company of MidCap and owns MidCap Financial Holdings Trust, which in turn owns the group's U.S. business. We view Midcap Financial Holdings Trust as a core subsidiary of MidCap. MidCap, through its U.S. subsidiaries, primarily originates senior secured loans to middle-market companies in the U.S. and is managed by Apollo Capital Management LP. The U.S. business accounts for about 95% of MidCap's overall business; the remainder is mostly in Europe,” S&P said in a press release.
The B+ senior unsecured debt rating on MidCap FIT is one notch below the issuer credit rating, reflecting substantial amounts of priority senior secured debt. “The B subordinated debt rating on MidCap Financial Holdings Trust is two notches below the issuer credit rating, reflecting the debt's subordinated position,” S&P said.
The outlook is stable, reflecting an expectation that MidCap, over the next 12 months, will operate with debt to adjusted total equity of 3.6x-4.1x and keep its strong underwriting record.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.