Business
Capital Southwest Receives Investment Grade Rating from Moody’s Investors Service
Moody’s assigns a first-time Baa3 long-term issuer rating with a stable outlook DALLAS, April 03, 2023 (GLOBE NEWSWIRE) -- Capital Southwest Corporation
About this update from Capital Southwest Corporation
[{"type":"text","content":"Moody’s assigns a first-time Baa3 long-term issuer rating with a stable outlook\nDALLAS, April 03, 2023 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced that Moody’s Investors Service, Inc. (“Moody’s”) has assigned Capital Southwest an investment grade long-term issuer rating of Baa3 with a stable outlook. Factors cited by Moody’s in support of its rating include Capital Southwest’s strong capitalization and funding profile, first-lien oriented investment portfolio, strong recurring earnings generation, and internally managed structure. Moody’s stated that its stable outlook for its rating reflects its expectation that Capital Southwest’s core profitability will continue to benefit from elevated reference rates, that the Company will maintain adequate liquidity to meet potential liquidity needs, and that regulatory leverage will be maintained within or below the Company’s target range of 0.90x – 1.10x. “We are extremely pleased that Moody’s has initiated coverage of Capital Southwest with a Baa3 investment grade rating,” stated Bowen Diehl, President and Chief Executive Officer of Capital Southwest. “This rating is a further validation of our first lien focused investment strategy, our strong credit underwriting track record and our prudent balance sheet management through a variety of capital markets environments. We are very proud of what our team has accomplished since the launch of our middle market credit strategy and we look forward to continuing to be good stewards of our stakeholders capital for many years to come.” About Capital Southwest Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.2 billion in investments at fair value as of December 31, 2022. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $35 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the f...