Fitch puts two Blackstone/GSO preferreds on watch

Fitch Ratings said it placed on rating watch negative the AA long-term ratings assigned to the mandatory redeemable preferred stock issued by Blackstone/GSO Strategic Credit Fund and Blackstone/GSO Long-Short Credit Income Fund. Both funds are advised by Blackstone/GSO Debt Funds Management LLC.

“The RWNs reflect recent extreme market volatility and reduced asset liquidity, which have quickly eroded asset coverage cushions for closed-end funds and challenged fund managers’ ability to de-leverage. While the Blackstone/GSO closed-end funds were able to manage leverage and asset coverage in line with required guidelines specified in transaction documentation, risks remain with regards to the funds’ ability to sell assets at sufficient valuations at stress levels corresponding to the current high ratings,” Fitch said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.