DBRS rates WhiteHorse BBB

DBRS said it assigned BBB(low) issuer and senior debt ratings to WhiteHorse Finance, Inc. The trend is stable.

“The ratings reflect WhiteHorse’s established lower-middle market lending platform and track record, as it benefits from higher overall base rates and generates acceptable earnings from its predominantly floating-rate investment portfolio. The company has a diversified funding profile, including a material portion of unsecured debt, with well-laddered maturities,” the agency said in a press release.

The stable trend does consider the turbulence in the U.S. banking system and the possibility of a weakening economy, the agency said.

“While the recent bank failures had no direct impact on WhiteHorse, overall bank stress and financial market volatility may pressure middle market and lower middle market companies with limited access to capital. The lender-friendly private credit market with higher spreads and better documentation is balanced by WhiteHorse’s constrained origination capacity as gross leverage remains near target levels combined with the slowdown in traditional M&A transactions that have historically driven deal flow,” DBRS explained.

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