Capital Southwest Corporation maintains a BBB- investment grade rating from Fitch, reflecting stable financial performance and diverse funding.
Quiver AI Summary
Capital Southwest Corporation announced that Fitch Ratings has affirmed its investment grade long-term issuer rating of BBB- with a stable outlook, along with a senior secured debt rating of BBB also with a stable outlook. Fitch's ratings are supported by the company's focus on senior secured portfolios, diverse funding sources, strong asset coverage, and consistent operational performance. Based in Dallas, Texas, Capital Southwest is a business development company with approximately $1.8 billion in investments as of March 31, 2025, specializing in financing middle market businesses. The company highlights its flexibility to provide creative financing solutions due to its public status and permanent capital base. The press release also includes forward-looking statements and warns readers of various risks and uncertainties that could affect future performance.
Potential Positives
- Fitch Ratings affirmed Capital Southwest's investment grade long-term issuer rating of BBB- and senior secured debt rating of BBB, which enhances the company's credibility and attractiveness to investors.
- The stable outlook provided by Fitch indicates a strong operational performance and low risk of credit downgrade in the near future, which can positively influence investor confidence.
- Factors supporting the ratings include Capital Southwest’s senior secured portfolio focus, diverse funding profile, and robust asset coverage cushion, demonstrating financial stability and risk mitigation strategies.
- Capital Southwest has approximately $1.8 billion in investments at fair value, reflecting significant capital and the potential for growth in support of middle market businesses.
Potential Negatives
- The statement regarding "numerous risks, uncertainties and assumptions" indicates potential vulnerabilities in the company's future performance that could discourage investor confidence.
- The press release highlights a variety of risks including economic downturns, supply chain constraints, and elevated levels of inflation, suggesting that the company's operations could be significantly impacted by external factors.
- Capital Southwest's reliance on forward-looking statements with various uncertainties may lead investors to question the reliability of management's future projections and overall strategic direction.
FAQ
What is Capital Southwest Corporation?
Capital Southwest Corporation is an internally managed business development company focused on financing middle market businesses in Texas.
What are Capital Southwest's ratings from Fitch?
Fitch Ratings has affirmed Capital Southwest's long-term issuer rating of BBB- and a senior secured debt rating of BBB, both with a stable outlook.
What type of investments does Capital Southwest make?
Capital Southwest invests between $5 million to $50 million across capital structures, including first lien, second lien, and non-control equity co-investments.
How does Capital Southwest support its portfolio companies?
Capital Southwest provides flexible financing solutions that help support the acquisition and growth of its portfolio companies over extended periods.
What should investors know about forward-looking statements?
Forward-looking statements are based on management's expectations and are subject to risks that could cause actual results to differ significantly.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CSWC Insider Trading Activity
$CSWC insiders have traded $CSWC stock on the open market 3 times in the past 6 months. Of those trades, 3 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $CSWC stock by insiders over the last 6 months:
- RAMONA LYNN ROGERS-WINDSOR has made 2 purchases buying 921 shares for an estimated $20,114 and 0 sales.
- CHRISTINE BATTIST purchased 476 shares for an estimated $9,934
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CSWC Hedge Fund Activity
We have seen 93 institutional investors add shares of $CSWC stock to their portfolio, and 62 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- SANDERS MORRIS HARRIS LLC added 618,480 shares (+75.9%) to their portfolio in Q1 2025, for an estimated $13,804,473
- EPIQ PARTNERS, LLC added 255,400 shares (+inf%) to their portfolio in Q1 2025, for an estimated $5,700,528
- ZUCKERMAN INVESTMENT GROUP, LLC removed 245,448 shares (-36.5%) from their portfolio in Q1 2025, for an estimated $5,478,399
- TWO SIGMA ADVISERS, LP added 240,300 shares (+31.0%) to their portfolio in Q1 2025, for an estimated $5,363,496
- MILLENNIUM MANAGEMENT LLC added 231,614 shares (+90.0%) to their portfolio in Q1 2025, for an estimated $5,169,624
- CITADEL ADVISORS LLC added 213,100 shares (+177.1%) to their portfolio in Q1 2025, for an estimated $4,756,392
- BALYASNY ASSET MANAGEMENT L.P. removed 198,063 shares (-19.8%) from their portfolio in Q1 2025, for an estimated $4,420,766
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$CSWC Analyst Ratings
Wall Street analysts have issued reports on $CSWC in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Citigroup issued a "Outperform" rating on 06/24/2025
To track analyst ratings and price targets for $CSWC, check out Quiver Quantitative's $CSWC forecast page.
Full Release
DALLAS, July 02, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced that Fitch Ratings (“Fitch”) has affirmed Capital Southwest’s investment grade long-term issuer rating of BBB- with a stable outlook. Additionally, Fitch affirmed CSWC’s senior secured debt rating of BBB with a stable outlook. Factors cited by Fitch in support of its ratings include Capital Southwest’s senior secured portfolio focus, diverse funding profile, robust asset coverage cushion and consistent operating performance.
About Capital Southwest
Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.8 billion in investments at fair value as of March 31, 2025. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.
Forward-Looking Statements
This press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest, including, but not limited to, the statements about Capital Southwest's future performance and financial performance and financial condition. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; changes in the interest rate environment and its impact on our business and our portfolio companies; regulatory changes; tax treatment; our ability to operate Capital Southwest SBIC I, LP and Capital Southwest SBIC II, LP as small business investment companies; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy and its impact on our portfolio companies and our financial condition; an economic downturn and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us; the impact of supply chain constraints on our portfolio companies; and the elevated levels of inflation and its impact on our portfolio companies and the industries in which we invests.
Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2025 and any subsequent filings with the SEC, including the "Risk Factors" sections therein, for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.
Investor Relations Contact:
Michael S. Sarner, President and Chief Executive Officer
214-884-3829