Business Development Corporation of America, a non-traded business development company affiliated with Benefit Street Partners, reported that Moody’s Investors Service has assigned the company with an investment grade rating of Baa3 and an outlook of “stable.”
Moody’s report stated, “BDCA’s Baa3 long-term issuer rating reflects its Baa3 standalone assessment, supported by an experienced manager in Benefit Street Partners, a focus on senior secured loans that should help mitigate potential losses, solid historical profitability and a history of low loan losses due to low exposure to cyclical sectors.”
“An investment grade rating from Moody’s is an important milestone for BDCA and will help the company to further enhance our capital structure,” said Richard Byrne, chief executive officer of BDCA.
BDCA also has an investment grade rating of BBB- from Kroll with a stable outlook.
BDCA is a non-traded business development company with a $2.6 billion investment portfolio, which primarily consists of senior loans to middle market companies, as of December 31, 2020. The company commenced its initial public offering in January 2011 and raised $1.9 billion before closing the offering in April 2015. Combined with distribution reinvestment plan proceeds, the company has raised $2.3 billion as of the fourth quarter of 2020.