Strong market position relative to other business development companies we rate Diverse portfolio in terms of asset class and number of borrowers Stable funding from permanent capital and multiple long-term debt issuances Predominately illiquid investments that may constrain financial flexibility in adverse markets Historically higher adjusted leverage ratio than peers' The stable outlook reflects S&P Global Ratings' view that ARES Capital Corp. (ARCC) will gradually increase its leverage over the next 12-24 months to 1.0x-1.3x on a debt-to-adjusted total equity (ATE) basis. We believe that it will use this additional leverage to invest in slightly lower yielding investments than those typically found in its current portfolio. We could lower the ratings if the company increased leverage, as measured by debt
