BlackRock Capital TCP Capital Corp. 'BBB-' Ratings Put On Watch Negative Due To COVID-19-Related Economic Effects

  • We expect the economic impact of the coronavirus pandemic to result in increased credit losses, greater calls on liquidity to fund commitments, and adverse financing conditions for business development companies.
  • We are placing our 'BBB-' issuer credit and debt ratings on BlackRock TCP Capital Corp. (TCPC) on CreditWatch with negative implications.
  • We expect to resolve the CreditWatch listing by either lowering the ratings one notch or affirming the existing ratings when we have better visibility into the company's financial results.
NEW YORK (S&P Global Ratings) March 24, 2020--S&P Global Ratings said today it placed its 'BBB-' issuer credit and senior unsecured debt ratings on BlackRock TCP Capital Corp. (TCPC) on CreditWatch with negative implications.
The CW placement reflects a heightened probability of a downgrade arising from the coronavirus pandemic. We expect the pandemic to lead to increased credit losses, higher calls on liquidity to fund commitments, and adverse financing conditions for business development companies. The ratings also reflect TCPC's successful underwriting record and a sound funding profile.
We expect to resolve the CreditWatch by either lowering the ratings one notch or affirming the existing ratings when we have better visibility into the company's financial results, likely when it reports March 30, 2020, results, if not sooner.

We could lower the ratings if TCPC's debt to ATE increases above 1.25x or asset coverage falls below 165%. We could also lower the ratings if we expect key earnings metrics to remain below our thresholds. If we do not expect the company to meet our earnings thresholds, a downgrade may become likely even if the company operates with 1.0x-1.25x debt to ATE leverage.
We work across the world

From London to San Francisco, to our home base in (Saint Helier) Jersey, we’re looking for extraordinary and creative scientists to help us drive the field forward.

AC Investment Inc. currently does not act as an equities executing broker or route orders containing equities securities. If AC Invest’s business model were to change and it begins routing non-directed orders in NMS securities, it will comply with the disclosure requirement of Rule 606.

77 Massachusetts Avenue Cambridge, MA 02139 617-253-1000 pr@ademcetinkaya.com