Leading market position relative to other business development companies (BDCs) Strong historical underwriting track record and investment portfolio results Largely unsecured funding with well-laddered maturities Well-diversified investment portfolio by industry and borrower Concentrated in leveraged lending to middle-market companies amid economic disruption Relatively high exposure to second-lien loans Predominately illiquid investments that may constrain financial flexibility in an adverse market The stable outlook reflects ARCC's very strong capital position, successful underwriting track record, and favorable funding. Over the next 12 months, we expect the company will maintain debt to ATE of less than 1.3x, a substantial cushion to the 150% modified asset coverage ratio, and sufficient liquidity to meet draws by portfolio companies against revolvers and delayed draw term loans.
