Fitch’s Private Middle Market Portfolio, Rating Activity Upgrades/downgrades in Fitch’s PMM portfolio are generally skewed toward downgrades, as issuer ratings can be constrained on the upside based on limited scale…. Subscribe to Read MoreAlready a member? Log in here...
Fitch’s Privately Monitored Middle Market Portfolio Overview, 3Q23 Fitch expects revenue growth to moderate to the mid-single digits in 2023 after two strong years of double-digit growth following normalization after the pandemic, given a slowing economy and limited M&A…. Subscribe to Read MoreAlready a member? Log in here...
Fitch’s Privately Monitored Middle Market Portfolio Overview, 3Q23 Interest coverage (EBITDA/interest) within Fitch’s portfolio is expected to decline toward 1.7x in 2023 as a full year of increased rates and… Subscribe to Read MoreAlready a member? Log in here...
Fitch’s Privately Monitored Middle Market Portfolio Overview, 3Q23 Fitch projects EBITDA leverage for 2023 to be around 6.0x, down slightly from 6.3x in 2022…. Subscribe to Read MoreAlready a member? Log in here...
U.S. Middle Market CLOs’ ‘CCC’ Exposure Rising in Third Quarter Negative rating migration has increased the average exposure to assets rated ‘CCC+’ or below to 19.4%, up 4.3% compared to 2Q23, across U.S. middle market (MM) collateralized loan obligations (CLOs) under surveillance by Fitch Ratings…. Subscribe to Read MoreAlready a member? Log in here...
Fitch’s Private Middle Market, Model-Based Credit Opinion (MBCO) Portfolio, 2Q23 Fitch’s privately covered middle market (MM) portfolio is comprised of generally smaller issuers (with average EBITDA of $51M, average revenue of $275M and average debt of $299M). The portfolio comprises of issuers in the b+* to c* range (asterisk denotes Credit Opinion)…. Subscribe to Read
Fitch’s Private Middle Market Portfolio, Rating Activity Upgrades/downgrades within Fitch’s private MM portfolio are generally skewed toward downgrades, as issuer ratings can be constrained on the upside based on limited scale. Downgrades increased sharply in 2020 due to the impacts of the pandemic…. Subscribe to Read MoreAlready a member? Log in here...
How Might MM CLO Note Ratings Fare Amid High Rates and EBITDA Pressures? To assess the effect of higher interest rates, Fitch applied a rate of 5.5%, and 6.5% to represent a longer rate hike cycle. These rate stresses were combined with EBITDA haircuts to represent cost pressures on loan issuers as a result of…
How Have BDC Funding Profiles Trended? BDCs took advantage of strong capital market conditions moving out of the pandemic to issue record amounts of unsecured debt, which enhanced funding flexibility and extended funding durations…. Subscribe to Read MoreAlready a member? Log in here...
How Have BDCs Performed Due to Rapidly Rising Interest Rates? BDCs were well positioned to benefit from rising rates, given largely floating rate portfolios and the increase in fixed-rate funding following meaningful unsecured debt issuance in 2H20 through 1H22…. Subscribe to Read MoreAlready a member? Log in here...