Moody's affirms Baa3 long-term issuer rating with stable outlook
DALLAS, April 2, 2024 (Globe Newswire) — Capital Southwest Corporation (“Capital Southwest” or the “Company”) (Nasdaq: CSWC) is committed to providing flexible financing solutions to support acquisitions and financings. We are a focused, internally managed business development company. Moody's Investors Service, Inc. (“Moody's”) announced today that it has affirmed Capital Southwest's long-term investment grade issuer rating at Baa3 with a stable outlook, driven by growth in the middle market business.
Moody's cited factors supporting the rating, including Capital Southwest's strong capital structure, diversified funding profile, first lien-oriented investment portfolio, current income generation, and internal management structure. Moody's maintains that the stable rating outlook reflects that Capital Southwest's core profitability continues to benefit from higher benchmark rates and that the company maintains adequate liquidity to meet potential liquidity needs. , and the expectation that regulatory leverage will be maintained within or below benchmark rates. Company target range.
About Capital Southwest
Capital Southwest Corporation (Nasdaq: CSWC) is an internally managed business development company based in Dallas, Texas, with investments of approximately $1.4 billion at fair value as of December 31, 2023. Capital Southwest is a middle market finance company focused on supporting acquisitions. Growing middle market businesses with investments ranging from $5 million to $35 million across capital structures including first-lien, second-lien, and non-controlling equity co-investments. As a publicly traded company with a permanent capital base, Capital Southwest has the flexibility to be creative with financing solutions and make investments that support the long-term growth of our portfolio companies.
Forward-looking statements
This press release contains historical information and forward-looking statements regarding Capital Southwest's operations and investments. This includes, but is not limited to, statements regarding Capital Southwest's future performance, financial performance, and financial condition. Forward-looking statements are statements that are not historical and can often be identified by words such as “intends,” “believes,” “expects,” and similar expressions, variations of these words, or the negative. Masu. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in the forward-looking statements. These risks include risks associated with: changes in the markets in which Capital Southwest invests; Changes in financial, capital and lending markets. changes in the interest rate environment and their impact on Capital Southwest's business and its portfolio companies; Regulatory changes. Handling of taxes. the ability to operate Capital Southwest SBIC I, LP, a wholly owned subsidiary of Capital Southwest, as a small business investment company; economic downturns and the impact on the ability of Capital Southwest's portfolio companies to operate and the investment opportunities available to Capital Southwest; The impact of supply chain constraints and labor shortages on Capital Southwest's portfolio companies. increased levels of inflation and the impact on Capital Southwest's portfolio companies and the industries in which Capital Southwest invests;
Readers should not place undue reliance on forward-looking statements and should read Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2023 and the “Risk Factors” section therein. We encourage you to review subsequent submissions, including: The Securities and Exchange Commission seeks a more complete discussion of risks and other factors that may affect forward-looking statements. Except as required by federal securities laws, Capital Southwest may make no forward-looking statements, whether as a result of new information, future events, changed circumstances, or for any other reason, after the date of this press release. We undertake no obligation to publicly update or revise it. release.
Investor Information Contact:
Michael S. Cerner, Chief Financial Officer
214-884-3829
