Hercules Capital Receives BBB- Affirmed Investment Grade Credit and Corporate Rating from Fitch Ratings, Inc.
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Insights
The affirmation of Hercules Capital's investment grade credit and corporate rating at BBB- by Fitch Ratings signals a stable risk profile for the company. This is significant for investors as credit ratings can influence a company's borrowing costs and its attractiveness to potential investors. A stable outlook suggests that the rating agency does not foresee any immediate factors that could downgrade the company's rating in the near term.
From a financial perspective, the rating reflects Hercules Capital's solid track record in credit operations and its ability to maintain a strong funding flexibility. The company's focus on first-lien secured lending mitigates risk by prioritizing their claim on the borrower's assets in the event of default. The above-average asset coverage cushion further enhances investor confidence, indicating that the company holds sufficient capital against its investment portfolio.
Hercules Capital's business model, which specializes in providing financing to venture, growth and established stage companies backed by leading venture capital, is a unique niche. The diversified nature of its portfolio across various industries and stages of company development can be attractive to investors looking for exposure to the venture capital ecosystem without the direct risk of investing in individual startups. The company's proven operational excellence and experienced management team are factors that likely contributed to the stable rating affirmation.
Moreover, the company's demonstrated access to public debt and equity markets is a testament to its reputation and the confidence the market has in its business operations. This could imply a positive sentiment among investors and a potential for continued growth, especially if the company continues to leverage its broad industry relationships to identify and finance high-potential companies.
“We are very pleased that Fitch has affirmed our BBB- investment grade credit and corporate rating,” stated Seth Meyer, chief financial officer of Hercules. “This rating reflects the scale, quality and proven track record of operational excellence that our differentiated and diversified venture and growth stage lending business model, combined with our steadfast commitment to disciplined underwriting, consistently delivers year after year.”
The BBB- rating reflects the Company’s first-lien focus of the investment portfolio, solid track record in credit, broad industry relationships, consistent operating performance, strong funding flexibility with demonstrated access to the public debt and equity markets, above-average asset coverage cushion and experienced management team.
About Hercules Capital, Inc.
Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences and sustainable and renewable technology industries. Since inception (December 2003), Hercules has committed approximately
Hercules, through its wholly owned subsidiary business, Hercules Adviser LLC (“Hercules Adviser”), also maintains an asset management business through which it manages investments for external parties (“Adviser Funds”). Hercules Adviser is registered as an investment adviser under the Investment Advisers Act of 1940.
Hercules’ common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol “HTGC.” In addition, Hercules has one retail bond issuance of
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We may use words such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may” and similar expressions to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and should not be relied upon in making any investment decision. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations. While we cannot identify all such risks and uncertainties, we urge you to read the risks discussed in our Annual Report on Form 10-K and other materials that we publicly file with the Securities and Exchange Commission. Any forward-looking statements made in this press release are made only as of the date hereof. Hercules assumes no obligation to update any such statements in the future.
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Michael Hara
Investor Relations and Corporate Communications
Hercules Capital, Inc.
(650) 433-5578
mhara@htgc.com
Source: Hercules Capital, Inc.
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