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Hercules Capital's BBB- Rating Reaffirmed by Standard & Poor

Hercules Capital, Inc.’s HTGC investment grade credit and corporate ratings of BBB- have been reaffirmed by Standard & Poor’s Ratings Services.

Hercules Capital, founded in December 2003, provides venture capital to technology and life science-related companies. Its client list includes selected publicly listed companies, privately held companies backed by leading venture capital, private equity firms, and lower middle-market companies.

Since inception, the company has been successful in maintaining minimal net realized losses on investments. Also, it has a solid liquidity and capital position, supported by which, it continues to enhance shareholder value through efficient capital deployment activities.

Moreover, the company’s investments are concentrated towards first-lien senior secured debt. Also, it has successfully kept financial leverage relatively low.

It is on account of these factors that the company’s ratings stand at the current level.

The company’s chairman and chief executive officer, Manuel A. Henriquez, said, “We are very pleased that Standard & Poor’s has once again reaffirmed our BBB- investment grade credit and corporate rating. This is a reflection of our commitment to and discipline in underwriting, and the depth and experience of our management and underwriting teams.”

He added, “We take great pride in this achievement, and we will continue to work hard to maintain our investment grade rating. Furthermore, being one of the few BDCs with an investment grade rating and access to both the debt and equity capital markets, has meant ample access to liquidity to support our ‘slow and steady’ growth strategy.”

However, the company’s price performance does not seem impressive. Its shares have lost 5.9% in a year’s time, as against 2.4% growth for the industry it belongs to.

Currently, Hercules Capital carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the finance space are mentioned below.

The Toronto-Dominion Bank TD has witnessed an upward earnings estimate revision of 13.2% for the current fiscal year over the past 60 days. Its share price has increased 24.6% in the past year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

M&T Bank Corporation MTB witnessed a marginal upward earnings estimate revision for the current year over the past 60 days. Its share price has increased 32.6% in a year’s time. It carries a Zacks Rank #2 (Buy).

The PNC Financial Services Group, Inc. PNC also carries a Zacks Rank #2. Its Zacks Consensus Estimate for the current year has been revised marginally upward in the last 60 days. Its shares have gained 47.8% in the past 12 months.

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