Improved market position and revenue diversification with Allied acquisition Well-diversified portfolio with respect to industry and geography Strong capital levels Good funding Increase in nonaccruing loans after the Allied acquisition Declining interest coverage due to significant debt assumed with Allied acquisition Higher-risk portfolio with increasing proportion of mezzanine investments Standard&Poor's Ratings Services' ratings on New York City–based Ares Capital Corp. (NASDAQ: ARCC) reflect the company's improved market position, which is characterized by a $3.8 billion on-balance-sheet investment portfolio and $5.1 billion in off-balance-sheet assets under management (AUM) as of June 30, 2010. The company's strong capital levels and good funding sources also support the rating. Negatives for the rating include the increase in nonaccruing loans due to weaker-quality
