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American Capital Ltd. Dec 11
Standard & Poors, Dec 2011
Abstract
Poor investment track record High level of nonaccrual loans Weak realized earnings due to continued realized losses Concentration in finance company and structured equity has amplified exposure to investment market volatility Adequate funding Low leverage Standard & Poor's Ratings Services' rating on Bethesda, Md.-based American Capital Ltd. (ACAS) is based on the company's poor investment track record, high level of nonaccrual loans, weak realized earnings, and exposure to equity investments in finance companies and structured securities. The company's low leverage and adequate funding partly offset these weaknesses. In 2011, ACAS' management continued to liquidate troubled assets on its balance sheet, shrink its portfolio, and pay down the high-cost debt that resulted from the firm's June 2010 refinancing transaction. That refinancing...
Companies mentioned in this report are: American Capital Ltd.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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