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Fitch Rates Franklin Square’s FSIC

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FS Investment Corporation (FSIC) revealed its investment credit rating as assigned by Fitch Ratings. The recently listed BDC received a rating of BBB- with a Stable Outlook.

Managed by Franklin Square Capital Partners, FSIC listed on the NYSE about two weeks ago. The BDC primarily originates and invests in senior secured loans and other securities of private U.S. companies.

One factor that supported the rating was FSIC’s relationship with GSO Capital Partners, as FSCI is sub-advised by GSO affiliate Blackstone. Having over $10 billion in assets under management across their funds, Franklin Square and GSO / Blackstone together are the world’s largest manager of BDC assets. Other factors include strong asset quality, consistent operating performance, and low leverage, among others.

Some rating constraints include the company’s limited performance track record and unproven access to the equity markets due to how recent the public listing is.

Michael C. Forman, Chairman and CEO of FSIC, commented, “Fitch represents our second investment grade rating from a major agency in the last four weeks, the first being the BBB- with a positive outlook from S&P.”