Strong and consistent profitability Strong capital levels Good asset liquidity relative to other business development companies Exposure to investment market volatility Short track record High risk portfolio Governance challenges related to having an external portfolio manager Standard&Poor's Ratings Services' ratings on New York City–based Ares Capital Corp. (Ares Capital; NASDAQ: ARCC) are based on the firm's consistent financial performance coupled with strong capital levels and asset liquidity that is strong relative to that of other business development companies (BDCs). These positive factors are partly offset by Ares Capital's exposure to volatile investment markets, its short track record, and the high credit risk of its investment portfolio. Scant equity ownership by executives and external management of the firm's portfolio
