Moody's rates American Capital notes B3

Moody's Investors Service said it assigned a B3 rating to American Capital Ltd.'s proposed $350 million senior unsecured notes due 2018.

The company's B2 corporate family and B2 senior secured ratings were affirmed and the outlook remains stable.

Moody's said the B3 rating of the unsecured notes is based upon their terms and priority in American Capital's capital profile. The unsecured notes are structurally subordinated to the firm's secured and subsidiary indebtedness, but note holders benefit from high asset coverage that strengthens recovery prospects in a default scenario.

American Capital's ratings are supported by its expertise and scale in investing in private middle market companies and its diverse (both by geography and business sector) investment portfolio, the agency said.

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