On July 31, 2007, Standard&Poor's Ratings Services assigned its 'BBB' long-term counterparty credit rating to Ares Capital Corp. (Ares Capital, NASDAQ: ARCC). The outlook is stable. The rating is based on the firm's consistent financial performance coupled with strong capital levels and asset liquidity that is strong relative to other Business Development companies (BDCs). These positive factors are partly offset by Ares Capital's exposure to volatile investment markets, its short track record, and the high credit risk of its investment portfolio. Scant equity ownership by executives as well as external management of the firm's portfolio are constraining rating factors. With $1.5 billion in assets at March 31, 2007, Ares Capital selects and structures investments in middle-market companies with
