Owl Rock Capital Corp.

The stable outlook reflects S&P Global Ratings' expectation that over the next 12-24 months, ORCC will maintain leverage of 0.9x-1.25x as measured by debt to adjusted total equity (ATE). In addition, we expect the company will meet our key earnings metrics thresholds for the rating. We could lower the ratings if debt to ATE exceeds 1.25x; asset quality materially weakens, in our view; or liquidity becomes strained, perhaps due to draws on unfunded commitments by portfolio companies in a stress scenario. We could also lower the ratings if debt to ATE exceeds 1.0x and the company does not meet any one of our key earnings metrics: Realized return on average investments of at least 5.0% Non-deal-dependent interest coverage of at

...Owl Rock Capital Corp. (ORCC) is a specialty finance company focused on private middle-market companies across diverse industries. It has elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940. ORCC is externally managed by Owl Rock Capital Advisors LLC, an indirect subsidiary of Blue Owl Capital Inc. ORCC's management is highly experienced in leveraged finance, and the Owl Rock Capital Partners direct lending platform has strong origination capabilities. Leverage is relatively low, with debt to equity of 0.96x as of March 31, 2021, and management intends to maintain it in the 0.9x¡1.25x range. The company also has favorable funding, in our view, with about 53% of its debt unsecured as of March 31. Partly offsetting these strengths is ORCC's concentration in leveraged lending to middle-market companies. Although management is highly experienced, the company has a limited operating history and grew rapidly during a highly competitive period...

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