Hercules Capital Receives Reaffirmed Baa3 Investment Grade Rating with Revised Outlook to Positive from Moody’s Investors Service
Hercules Capital, Inc. (NYSE: HTGC) has received a reaffirmed Baa3 investment grade credit and corporate rating from Moody's Investors Service, with a revised outlook to positive from stable. This rating reflects Hercules' strong long-term operating history, internally managed structure, and differentiated venture and growth stage lending model.
The positive outlook is based on expectations of resilient performance despite elevated sector risks, supported by Hercules' focus on senior secured investments, sound underwriting, and effective asset allocation. Moody's anticipates Hercules will maintain superior profitability compared to peers, manage leverage below 1.25x debt-to-equity, and improve its funding and liquidity profile.
Hercules Capital, Inc. (NYSE: HTGC) ha ricevuto una conferma del rating di credito e corporate investment grade Baa3 da Moody's Investors Service, con un outlook rivisto a positivo rispetto a stabile. Questo rating riflette la solida storia operativa a lungo termine di Hercules, la sua struttura gestita internamente, e il suo modello di prestiti differenziato per venture e fasi di crescita.
L'outlook positivo si basa sulle aspettative di prestazioni resilienti nonostante i rischi settoriali elevati, sostenuto dal focus di Hercules su investimenti senior garantiti, una sana underwritting e un'efficace allocazione degli asset. Moody's prevede che Hercules manterrà una superiore redditività rispetto ai concorrenti, gestirà un rapporto debito/capitale sotto 1.25x, e migliorerà il suo profilo di finanziamento e liquidità.
Hercules Capital, Inc. (NYSE: HTGC) ha recibido una reafirmación de la calificación de crédito y corporativa Baa3 por parte de Moody's Investors Service, con un perspectiva revisada a positiva en lugar de estable. Esta calificación refleja la fuerte historia operativa a largo plazo de Hercules, su estructura gestionada internamente, y su modelo de préstamos diferenciado para empresas en etapas de crecimiento.
La perspectiva positiva se basa en las expectativas de un rendimiento resilient a pesar de los riesgos elevados del sector, respaldado por el enfoque de Hercules en inversiones senior aseguradas, una buena suscripción y una efectiva asignación de activos. Moody's anticipa que Hercules mantendrá una superior rentabilidad en comparación con sus pares, gestionará un apalancamiento por debajo de 1.25x en su relación deuda-capital, y mejorará su perfil de financiamiento y liquidez.
Hercules Capital, Inc. (NYSE: HTGC)는 Moody's Investors Service로부터 Baa3 투자 등급 신용 및 기업 등급을 재확인 받았으며, 전망이 안정적에서 긍정적으로 조정되었습니다. 이 평가는 Hercules의 강력한 장기 운영 이력, 내부 관리 구조, 차별화된 벤처 및 성장 단계 대출 모델을 반영합니다.
긍정적인 전망은 강한 성과가 예상되는 것에 기반하고 있으며, 이는 Hercules의 선순위 유가증권 투자, 건전한 언더라이팅, 그리고 효과적인 자산 배분에 의해 뒷받침됩니다. Moody's는 Hercules가 동료들에 비해 우수한 수익성을 유지하고, 부채-자본 비율을 1.25배 이하로 관리하며, 재무 및 유동성 프로필을 개선할 것으로 예상합니다.
Hercules Capital, Inc. (NYSE: HTGC) a reçu une confirmation de la notation de crédit et de la notation d'entreprise Baa3 par Moody's Investors Service, avec un perspective révisée à positive au lieu de stable. Cette notation reflète la forte histoire opérationnelle à long terme de Hercules, sa structure gérée en interne, et son modèle de prêt différencié pour les phases venture et de croissance.
La perspective positive repose sur des attentes de performance résiliente malgré des risques sectoriels élevés, soutenue par l'accent mis par Hercules sur des investissements senior sécurisés, une souscription solide, et une allocation d'actifs efficace. Moody's prévoit qu'Hercules maintiendra une rentabilité supérieure par rapport à ses pairs, gérera un ratio d'endettement inférieur à 1,25 fois le montant des capitaux propres, et améliorera son profil de financement et de liquidité.
Hercules Capital, Inc. (NYSE: HTGC) hat von Moody's Investors Service eine bestätigte Baa3-Anlageklasse- und Unternehmensbewertung erhalten, mit einem überarbeiteten Ausblick auf positiv statt stabil. Dieses Rating spiegelt die starke langfristige Betriebshistorie von Hercules, die intern verwaltete Struktur und das differenzierte Kreditvergabe-Modell für Start-ups und Wachstumsphasen wider.
Der positive Ausblick basiert auf den Erwartungen einer resilienten Performance trotz erhöhter Sektor-Risiken, unterstützt durch Hercules' Fokus auf senior gesicherte Investitionen, fundierte Risikoanalyse und effektive Vermögensallokation. Moody's erwartet, dass Hercules eine überlegene Rentabilität im Vergleich zu Mitbewerbern beibehält, die Verschuldung unter 1,25-fachem Eigenkapital steuert und sein Finanzierungs- und Liquiditätsprofil verbessert.
- Reaffirmed Baa3 investment grade credit rating
- Outlook revised to positive from stable
- Strong long-term operating history (21 years as a BDC)
- Sector-leading profitability
- Solid capitalization and funding
- Focus on senior secured investments
- Sound underwriting and effective asset allocation
- None.
Insights
Hercules Capital's reaffirmed Baa3 investment grade rating with a revised outlook to positive from Moody's is a significant development. This upgrade reflects the company's strong financial position and resilient business model in the venture and growth stage lending sector.
Key positives include:
- Sector-leading profitability
- 21-year operating history as a BDC
- Solid capitalization and funding
- Focus on senior secured investments
- Sound underwriting practices
The positive outlook suggests potential for further rating improvements if Hercules maintains its superior profitability, manages leverage below
For investors, this news indicates reduced risk and enhanced financial stability, which could positively impact the stock's valuation and attract more institutional investors seeking high-quality BDC exposure.
“We are very pleased that Moody’s has reaffirmed our Baa3 investment grade credit rating and revised our outlook to positive from stable,” stated Seth Meyer, chief financial officer of Hercules. “This rating and the change in outlook reflect our strong long-term operating history and internally managed structure, our differentiated and diversified venture and growth stage lending model and commitment to disciplined underwriting, as well as the scale of our institutionalized lending platform.”
The affirmed Baa3 rating reflects the Company’s sector-leading profitability, its 21-year operating history as a business development company, and its solid capitalization and funding. The revision to positive from stable reflects the expectation that the Company’s performance will be resilient despite elevated risks in the Company’s sector, supported by its orientation toward senior secured investments, sound underwriting and effective asset allocation. The positive outlook incorporates the expectation that Hercules will continue to generate profitability that is superior to peers, manage leverage below its ceiling of 1.25x debt-to-equity with a solid cushion to its
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 and life sciences industries. Since inception (December 2003), Hercules has committed more than
Hercules, through its wholly owned subsidiary business, Hercules Adviser LLC (the “Adviser Subsidiary”), also maintains an asset management business through which it manages investments for external parties (“Adviser Funds”). The Adviser Subsidiary 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241009943506/en/
Michael Hara
Investor Relations and Corporate Communications
Hercules Capital, Inc.
(650) 433-5578
mhara@htgc.com
Source: Hercules Capital, Inc.
FAQ
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