FS KKR Capital: 16% Discount To BV, 14% Yield, But There Are Risks

Henrik Sorensen FS KKR Capital Corp. (NYSE:FSK) reported a higher-than-anticipated increase in the non-accrual ratio in the December quarter, leading me to modify my stock classification from Buy to Hold. In the quarter ending March 31, 2024, FS KKR Capital benefited from a QoQ improvement in the non-accrual ratio, meaning its credit quality improved, but the BDC continues to have a narrow margin of dividend safety. FS KKR Capital, however, profited from growing demand for loans in 1Q24 and the stock is ...