FS KKR Capital falls after Moody's rating downgrade

FS KKR Capital

24/03/2026 17:26

** Shares of business development company FS KKR Capital Corp FSK.N fall 2.2% to $10.15 after credit rating agency Moody's downgrades FSK to BA1 from BAA3

** Moody's stated, "the downgrade reflects FSK's continued asset quality challenges, which have resulted in weaker profitability and greater NAV erosion over time relative to BDC peers"

** Non-accrual loans, meaning loans that borrowers have stopped making payments on, rose to 5.5% of total investments at the end of 2025, one of the highest percentages among rated BDC, according to the report

** However, FSK is well positioned from a liquidity perspective, with sufficient available revolver capacity and well-laddered unsecured debt maturities, Moody's added

** Last month, co lowered dividend to 48 cents from 70 cents in Q4 from Q3

** One of 11 analysts rate stock "strong buy" and 10 "hold"; their median PT is $15 - data compiled by LSEG

** Including session's move, FSK down 31.7% YTD

 (Reporting by Pragyan Kalita in Bengaluru)

 ((Pragyan.Kalita@thomsonreuters.com;))