UPDATE: Bank of America Downgrades Ares Capital Corporation to Neutral, Bullish Credit Thesis Played Out

Bank of America downgraded Ares Capital Corporation

from Buy to Neutral and maintained an $18.00 price objective. Bank of America said, "With credit markets benefitting from a favorable backdrop, one marked by abundant liquidity, tightening spreads, and loosening credit discipline, we think ARCC reflects a healthy dose of optimism already and we see few catalysts for further upside. Much of the FV appreciation is already reflected in asset values with spreads having tightened materially, suggesting a more relative-value investment in ARCC. The 8% yield is generous on a relative basis, but warrants a Neutral rating, in our view." Ares Capital Corporation closed at $18.47 on Friday.