This report does not constitute a rating action We expect Main Street will navigate asset quality strains despite higher-than-average nonaccruals and potential macroeconomic challenges. As of March 31, 2026, the portfolio had 17 issuers on nonaccrual status, making up 5.1% of investments at cost, up from 4.2% at year-end 2025 and above the 3.1% average of publicly traded business development companies. The rise stemmed from the addition of JTI Electrical&Mechanical LLC to nonaccrual ($49.2 million cost/$15.2 million fair value). Offsetting the higher nonaccruals is Main Street's payment-in-kind (PIK) income, which remained stable at 3.5% of gross investment income for the 12 months ended March 31, 2026. That said, we expect asset quality challenges will persist as borrowers in
