Fitch: Apollo outlook negative

Fitch Ratings said it revised the outlook on Apollo Investment Corp. to negative from stable and affirmed its long-term issuer default rating and senior secured debt at BBB.

The agency said the outlook revision reflects the uncertainty surrounding the recognition of further unrealized depreciation on Apollo's portfolio, which, if material, could pressure the company's ability to maintain compliance with asset coverage requirements.

Fitch recognizes Apollo's more conservative leverage strategy, relative to peers, and its plans to preserve capital and liquidity over the near term but said unpredictable movements in market valuation could quickly negate the current equity cushion.

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