Main Street Capital Corp.

The stable outlook reflects Main Street Capital Corp.'s strong capital position, extensive record of good performance, and diverse funding sources. Over the next 12-24 months, we expect the company to operate with debt to adjusted total equity (ATE) of 1.0x-1.5x, a significant cushion to the minimum 150% asset coverage ratio, and debt (excluding small business investment company debt) to reported equity of 0.7x-0.9x. We could lower the ratings in the next 12-24 months if: Debt to ATE exceeds 1.5x; Regulatory asset coverage ratio declines to 165%; Asset quality or earnings materially weaken; or The company significantly increases its equity investments (on a cost basis). An upgrade is unlikely over the next 12 months. Headquartered in Houston, Main Street is a

...Our ratings on Main Street Capital Corp. reflect the company's low leverage, long record of good performance, and diversity of funding sources. On the other hand, the ratings are limited by elevated nonaccruals and S&P Global Ratings' view that the company's investments in illiquid assets, such as the equity of lower middle-market (LMM) companies, could constrain financial flexibility in adverse markets....

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