Fitch affirms Apollo Investment

Fitch Ratings said it affirmed the long-term issuer default rating, secured debt rating and unsecured debt rating of Apollo Investment Corp. at BBB-.

The outlook remains negative.

The A rating and stable outlook assigned to Apollo Global Management, LLC, the parent company of Apollo's external manager, Apollo Investment Management, LP, are unaffected.

Fitch's said its outlook for the business development company sector remains negative in 2019, reflecting the continuation of competitive underwriting conditions, given unattractive supply/demand dynamics in the middle market, earnings pressure, unsustainable asset quality metrics and limited access to growth capital.

Additionally, Fitch said it believes the passage of the Small Business Credit Availability Act, which permits BDCs to reduce asset coverage to 150% from 200%, has led to elevated execution risk for those BDCs pursuing lower asset coverage requirements and portfolio rotations and uncertainty around funding flexibility.

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