Fitch Ratings said Friday it has assigned an investment-grade long-term issuer default rating of "BBB" to Apollo Investment Corp., which invests mainly in midsize private companies.
Fitch also gave Apollo a "BBB" senior secured debt rating. About $1.6 billion of debt is affected by the action. The rating outlook is stable.
Fitch said the ratings reflect Apollo Investment's consistent operating performance, moderate portfolio investment, solid asset quality, experienced management team, low leverage and access to Apollo Global Management LLC's resources.
Offsetting those positive factors, Fitch said the ratings also reflect the company's short operating history, limited funding flexibility to date, dependence on the capital markets and intense competition.
Fitch noted that some unrealized portfolio depreciation is expected over the near term given the market environment. Fitch also expects Apollo Investment to develop more funding flexibility over time.
Apollo Investment shares fell 26 cents to $14.99 in morning trading.
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