We expect Main Street Capital Corp.'s leverage, as measured by debt to adjusted total equity (ATE), to increase above 1x, and realized return on average portfolio investments to remain under 5% over the next few quarters. The company has stabilized its asset quality that was hurt by the pandemic, with nonaccruals at cost now below pre-pandemic levels. As a result, we affirmed the issuer credit and senior unsecured debt ratings on the company at 'BBB-'. The stable outlook reflects our expectation that over the next 12 months, the company will operate with debt to ATE of over 1x, an adequate cushion to the minimum 200% asset coverage ratio, and debt, excluding Small Business Investment Co. (SBIC) debt, to reported equity
