Fitch Ratings affirmed Main Street Capital Corporation's Long-Term Issuer Default Rating (IDR) and unsecured debt rating at 'BBB-', and its secured debt rating at 'BBB' on July 1, 2025. The Rating Outlook remains Stable.
Fitch highlighted Main Street's portfolio focus on senior debt investments, strong portfolio diversification, and a solid track record in credit and equity investing. The company also maintains an above-average asset coverage cushion, consistent operating performance, and strong funding flexibility.
Rating constraints noted by Fitch include Main Street's above-average exposure to equity investments, which could lead to more valuation volatility, and a focus on lower middle market companies with below-average EBITDA, potentially increasing portfolio risk. Non-accrual levels were elevated at 1.7% of the total investment portfolio at fair value and 4.5% at cost as of Q1 2025.
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