Ares Capital Corp. 'BBB' Ratings Placed On CreditWatch Negative Following Plan To Acquire American Capital Ltd.

Ares Capital Corp. has announced an agreement to acquire American Capital Ltd. with a combination of cash and stock. We are placing the ratings on Ares Capital, including the 'BBB' issuer, senior unsecured, and senior secured credit ratings, on CreditWatch with negative implications. The CreditWatch placement reflects our expectation that the acquisition may weaken the combined company's pro forma risk profile, with a higher level of equity and structured finance investments. NEW YORK (S&P Global Ratings) May 23, 2016--S&P Global Ratings said today it placed its ratings on Ares Capital Corp. (ARCC), including the 'BBB' issuer credit rating, 'BBB' senior unsecured ratings, and 'BBB' senior secured rating, on CreditWatch with negative implications. The CreditWatch placement is based on ARCC's announcement

...+ Ares Capital Corp. has announced an agreement to acquire American Capital Ltd. with a combination of cash and stock. + We are placing the ratings on Ares Capital, including the '###' issuer, senior unsecured, and senior secured credit ratings, on CreditWatch with negative implications. + The CreditWatch placement reflects our expectation that the acquisition may weaken the combined company's pro forma risk profile, with a higher level of equity and structured finance investments. NEW YORK (S&P Global Ratings) May 23, 2016--S&P Global Ratings said today it placed its ratings on Ares Capital Corp. (ARCC), including the '###' issuer credit rating, '###' senior unsecured ratings, and '###' senior secured rating, on CreditWatch with negative implications. The CreditWatch placement is based on ARCC's announcement that it will acquire American Capital Ltd. (ACAS) for approximately $3.4 billion (excluding American Capital Mortgage Management LLC). ARCC will pay $1.47 billion in cash and about...

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