NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned an issuer and senior unsecured debt rating of BBB with a stable outlook to Business Development Corporation of America (“BDCA” or “the Company”), a Business Development Company (BDC) headquartered in New York, NY. BDCA is an externally managed, non-diversified, non-traded, closed-end investment company managed by BDCA Adviser, LLC.
The BBB rating of Business Development Corporation of America reflects the company’s significant position in senior secured first-lien assets, excellent leverage metrics that are well below the BDC regulatory limits, excellent asset quality performance to date, and the quality of its credit originations and monitoring. The rating is also supported by BDCA’s strong management experience in middle market lending. These strengths are counterbalanced by the potential risks related to BDCA’s relatively short track record as a new BDC and the potentially more volatile performance embedded in equity exposures within its equity-like and CLO investments.
KBRA’s stable outlook of BDCA is supported by the company’s leverage metrics which have a comfortable cushion below regulatory maximums and should provide good coverage in case of higher net realized losses in a forward economic stress scenario.
The ratings were assigned using KBRA’s Finance Company Rating Methodology, published April 1, 2013.
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About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
