The increase in non-accruals to 4% has negatively impacted Oaktree Specialty Lending's interest income and portfolio quality, leading to a 13% discount to its net asset value. With a dividend payout ratio at 100%, the company is using all its adjusted net investment income to cover dividends, which raises concerns about the sustainability of future payouts. This situation is likely to put downward pressure on the stock price in the short term.