Standard&Poor's Ratings Services' ratings on New York City–based Ares Capital Corp. (Ares Capital; NASDAQ: ARCC) are based on the firm's consistent financial performance coupled with strong capital levels and asset liquidity that is strong relative to that of 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 and 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 a view to finding a place in the capital structure that offers current
