OFS Capital: Worsening Non-Accrual Rate And Poor Dividend Coverage (Rating Downgrade)
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OFS Capital is facing challenges with a rising non-accrual rate and poor dividend coverage, leading to a rating downgrade. The company's non-accrual rate has increased to 5.4%, indicating higher risk compared to peers. OFS trades at a significant discount to NAV, justified by its poor NAV growth and elevated risk profile.
December 01, 2024 | 12:45 pm
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NEGATIVE IMPACT
OFS Capital's non-accrual rate has increased to 5.4%, leading to a rating downgrade. The company trades at a 28.4% discount to NAV, reflecting its poor NAV growth and elevated risk profile.
The increase in non-accrual rate to 5.4% indicates higher risk, justifying the rating downgrade. The significant discount to NAV reflects the market's concern over OFS's risk profile and poor NAV growth.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100