FS KKR Capital falls after Moody's rating downgrade

Shares of business development company FS KKR Capital Corp FSK.N fall 2.2% to $10.15 after credit rating agency Moody's downgrades FSK to BA1 from BAA3

Moody's stated, "the downgrade reflects FSK's continued asset quality challenges, which have resulted in weaker profitability and greater NAV erosion over time relative to BDC peers"

Non-accrual loans, meaning loans that borrowers have stopped making payments on, rose to 5.5% of total investments at the end of 2025, one of the highest percentages among rated BDC, according to the report

However, FSK is well positioned from a liquidity perspective, with sufficient available revolver capacity and well-laddered unsecured debt maturities, Moody's added

Last month, co lowered dividend to 48 cents from 70 cents in Q4 from Q3

One of 11 analysts rate stock "strong buy" and 10 "hold"; their median PT is $15 - data compiled by LSEG

Including session's move, FSK down 31.7% YTD