UPDATE: Stifel Nicolaus Downgrades BlackRock Kelso Capital to Sell on Valuation

Stifel Nicolaus downgraded BlackRock Kelso Capital

fro Hold to Sell. Stifel Nicolaus commented, "We are downgrading the shares of BlackRock Kelso (BKCC) to Sell as the shares are currently trading at a 9.5% earnings yield based on our 2013 estimate, a slight premium to the group which is trading a 9.7% yield. We believe it is more appropriate for BKCC to trade at a slight discount to the group based their credit quality history. Additionally, we do not estimate BKCC will cover its dividend from NOI earnings in 2012 or 2013. We do not think BKCC will cut its dividend; however, we tend to view any BDC who does not cover its dividend more negatively and thus recommend investors sell their BKCC shares and reinvest the proceeds." BlackRock Kelso Capital closed at $10.29 on Monday.