Allied Capital Corp. continues to sell portfolio investments in order to reduce debt leverage in anticipation of being acquired by Ares Capital Corp. We are keeping our ratings on Ares on CreditWatch Negative and our ratings on Allied on CreditWatch Positive. We expect to resolve the CreditWatch actions on both firms once the transaction closes, which we anticipate to occur at the end of first quarter 2010. On Jan. 22, 2010, Standard&Poor's Ratings Services' said that it is keeping its 'BB+' long-term counterparty credit rating and 'BB' senior unsecured debt rating on Allied Capital Corp. (Allied) on CreditWatch with positive implications. We are also keeping our 'BBB' long-term counterparty credit rating on Ares Capital Corp. (Ares) on CreditWatch
