UPDATE: Stifel Nicolaus Downgrades PennantPark Floating Rate Capital to Hold on Valuation

Stifel Nicolaus reduced its rating on PennantPark Floating Rate Capital

from Buy to Hold and removed its price target of $13 per share. Stifel Nicolaus commented, "Instead of predominantly making subordinated, illiquid middle market loans, PFLT focused a bit higher up the capital structure in more senior, slightly more liquid investments that generally have a lower yield (lower risk) and a floating rate investment yield. While we think this is an attractive product for those seeking lower risk due to the continued commentary coming out of the Federal Reserve about keeping interest rates low though 2015, we don't see a significant catalyst in the shares and thus believe investors should continue to Hold the shares and collect dividend but new investment dollars should be allocated to other names." PennantPark Floating Rate Capital closed at $12.90 on Monday.