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Hercules Capital BBB+ Credit Rating Affirmed by KBRA, Outlook Stable

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Key Takeaways

  • KBRA affirmed Hercules Capital's BBB+ credit and corporate ratings with a stable outlook.
  • Ratings reflect HTGC's senior secured debt focus, strong performance and prudent leverage.
  • Credit quality supported by capital market access, diverse funding and unsecured debt mix.

Hercules Capital, Inc. (HTGC - Free Report) announced that Kroll Bond Rating Agency, Inc. (“KBRA”) has affirmed its investment grade credit and corporate ratings of BBB+ with a stable outlook.

Rationale Behind HTGC’s Rating Affirmation

The affirmed ratings with a stable outlook indicate Hercules Capital’s diverse investment portfolio with an emphasis on senior secured first lien venture debt investments in the technology and life sciences sectors, strong operating performance record and appropriate leverage metrics.
 
Additionally, HTGC’s robust risk management and an experienced investment team in the venture capital space support the company’s credit quality.

Also, the ratings are aided by the company’s proven access to capital markets, diverse funding mix, and higher proportion of unsecured debt to total debt outstanding, enabling solid protection for noteholders.

Hercules Capital’s Price Performance & Zacks Rank

Shares of Hercules Capital have risen 4.9% against the industry’s 0.8% decline in the past year.

Zacks Investment Research
Image Source: Zacks Investment Research

HTGC currently carries a Zacks Rank #3 (Hold).

HTGC Peers Worth Considering

Some better-ranked peers of Hercules Capital worth a look are Main Street Capital Corp. (MAIN - Free Report) and Bain Capital Specialty Finance, Inc. (BCSF - Free Report) .

The Zacks Consensus Estimate for MAIN’s current-year earnings has been revised upward marginally in the past week. The company’s shares have gained 4.8% over the past six months. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for BCSF’s current year earnings has been revised 3.4% north in the past week. Its shares have declined 17.3% over the past six months. BCSF sports a Zacks Rank of 1 at present.

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