S&P: American Capital stable

Standard & Poor's said it revised its outlook on American Capital Ltd. to stable from negative.

At the same time, the agency said it affirmed its B- long-term counterparty credit rating and senior secured and senior unsecured debt ratings.

"The rating action follows American Capital's significant reduction of debt both at the time of its June 2010 debt exchange and during and after third-quarter 2010," said S&P credit analyst Sebnem Caglayan.

In June, American Capital completed a debt exchange paying $1.03 billion cash and issuing $1.3 billion of secured notes in exchange for its $2.4 billion of unsecured debt that had been in covenant default since first-quarter 2009, the agency noted, adding that the company continued to create liquidity through portfolio exits amounting to $305 million in third-quarter 2010, further reducing overall debt by $407 million.

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