Fitch Expects to Rate Ares Capital Corp.'s Convertible Notes 'BBB'

Fitch Ratings expects to rate Ares Capital Corporation's (Ares) $150 million unsecured convertible notes 'BBB'. The notes will mature in March 2017. Proceeds are expected to be used to repay or repurchase outstanding borrowings, which may include secured debt under the company's revolving facilities, and for other general corporate purposes, which may include funding investments in its investment backlog and pipeline.

Given that a portion of the proceeds are expected to be used to repay or repurchase outstanding borrowings, Fitch does not envision there being a material impact on the company's leverage levels as a result of the convertible note issuance.

Fitch expects to assign the following rating:

Ares Capital Corporation

--$150 million unsecured convertible notes 'BBB'.

Fitch currently rates Ares as follows:

Ares Capital Corporation

--Long-term Issuer Default Rating (IDR) 'BBB';

--Senior secured debt 'BBB';

--Senior unsecured debt 'BBB';

--Unsecured convertible notes 'BBB'.

Allied Capital Corporation

--Senior unsecured debt 'BBB'.

The Rating Outlook is Stable.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Aug. 16. 2011);

--'Investment Manager and Alternative Funds Criteria' (Dec. 23, 2011).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171

Investment Manager and Alternative Funds Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=661367

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Contacts:

Fitch, Inc.
Primary Analyst
Meghan Neenan, CFA, [phone]
Senior Director
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Katherine Hughes, [phone]
Associate Director
or
Committee Chairperson
Ed Thompson, [phone]
Senior Director
or
Media Relations
Brian Bertsch, [phone]
[e-mail]