Owl Rock Capital Corp.

The stable outlook is based on ORCC's strong originations, successful underwriting record, and favorable funding. Over the next 12-24 months, S&P Global Ratings expects the company will maintain debt to adjusted total equity (ATE) of 0.9x-1.25x, a substantial cushion to the 150% modified asset coverage ratio, and sufficient liquidity to meet draws by portfolio companies against revolvers and delayed draw term loans. We could lower the ratings if: ORCC's debt to ATE exceeds 1.5x, Its asset coverage ratio declines to 165%, or Asset quality materially weakens, or earnings materially weaken. We could raise the ratings in the next 12-24 months if leverage remains within expectations, and loss and operating performance are favorable relative to peer business development companies (BDCs). The

...Owl Rock Capital Corp.'s (ORCC) management is highly experienced in leveraged finance, and the Owl Rock Capital Partners direct lending platform has strong origination capabilities. Leverage is conservative, with debt to equity of 1.19x as of Dec. 31, 2021, which management intends to maintain at 0.9x¡1.25x. Also, the business development company (BDC) has favorable funding, in our view, with about 58% of its debt being unsecured as of Dec. 31, 2021. Partially offsetting these strengths are ORCC's concentration in leveraged lending to middle-market companies. Like other BDCs, its investments tend to be relatively illiquid, which may constrain financial flexibility in adverse market conditions. ORCC is a specialty finance company focused on private middle-market companies across diverse industries. It has elected to be regulated as a BDC under the Investment Company Act of 1940. ORCC is externally managed by Owl Rock Capital Advisors, an indirect subsidiary of Blue Owl Capital Inc. and part...

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