Fitch gives BB to Oxford, notes BB-

Fitch Ratings said it gave a BB long-term issuer default rating to Oxford Finance LLC and its wholly owned, debt-issuing subsidiary Oxford Finance Co-Issuer II Inc. Concurrently, the agency assigned an expected BB- rating to the firm's proposed unsecured debt issuance.

“Oxford's ratings reflect its solid franchise in the health care/life sciences sectors, its focus on senior lending, which has led to strong asset quality performance historically, relatively consistent operating performance through market cycles, adequate liquidity profile and experienced management team.

“Rating constraints include higher leverage as compared to business development company (BDC) peers, a largely secured funding profile, which reduces funding flexibility, and the potential liquidity and leverage impact from meaningful draws on portfolio company revolver commitments,” Fitch said in a press release.

Proceeds are expected to be used to repay unsecured debt and for general corporate purposes.

The outlook is stable.

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