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. On May 23, 2016, S&P Global Ratings 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 that it will acquire American Capital
