Capital Southwest Receives Affirmed Investment Grade Rating from Fitch Ratings

Core Viewpoint - Fitch Ratings has affirmed Capital Southwest Corporation's long-term issuer rating at BBB- with a stable outlook, indicating confidence in the company's financial stability and operational performance [1]. Company Overview - Capital Southwest Corporation is a Dallas-based business development company with approximately $1.8 billion in investments at fair value as of March 31, 2025 [2]. - The company focuses on middle market lending, providing investments ranging from $5 million to $50 million across various capital structures, including first lien, second lien, and non-control equity co-investments [2]. - As a public company with a permanent capital base, Capital Southwest has the flexibility to offer creative financing solutions and support the long-term growth of its portfolio companies [2]. Ratings and Financial Strength - Fitch Ratings has also affirmed the senior secured debt rating of Capital Southwest at BBB with a stable outlook, reflecting the company's strong asset coverage and diverse funding profile [1]. - Key factors supporting the ratings include the company's focus on a senior secured portfolio, robust asset coverage cushion, and consistent operating performance [1].