Keefe, Bruyette & Woods (KBW) downgraded Crescent Capital BDC from Outperform to Market Perform. The firm lowered its price target from $13.00 to $12.00.
Net asset value declined by 2.5% amid weaker earnings. The stock has fallen approximately 15% year-to-date.
KBW noted that credit quality has deteriorated for two years without signs of stabilization. Analysts expressed strained confidence in the company's underwriting standards.
The firm anticipates additional losses and writedowns in upcoming quarters. Turnarounds for non-accrual and watchlist investments will require more time.