UPDATE: Stifel Nicolaus Downgrades Gladstone Capital Corporation to Sell on Credit Quality

Stifel Nicolaus reduced its rating on Gladstone Capital Corporation GLAD from Hold to Sell. Stifel Nicolaus commented, "Based on our analysis of credit performance from 2005 to present, GLAD has the second worst credit quality track record in the BDC space and unfortunately it does not look like it is turning around anytime soon. While it is not usual that GLAD, along with the rest of the industry, experienced credit losses during 2008 and 2009, GLAD has not been able to recover like the rest of the group and continues to show deterioration in their portfolio." Gladstone Capital Corporation closed at $9.08 on Monday.