S&P keeps Allied Capital on watch

Standard & Poor's said it removed its BBB long-term counterparty credit rating on Ares Capital Corp. from CreditWatch negative, where it was placed in October. The agency said it affirmed the rating based on shareholders' approval of Ares' acquisition of Allied Capital Corp.

Allied Capital's BB+ long-term counterparty credit rating remains on CreditWatch positive. The agency also said it expects to raise the rating on Allied's senior unsecured debt to BBB from BB when the acquisition closes, as it will be rated under Ares going forward.

Shareholders from both companies have approved Ares' acquisition of Allied, which is expected to close April 1, the agency said.

Ares will retain its name, S&P said, and the combined entity will be based in New York.

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