Lafayette Square USA, Inc. Secures BBB (Low) Credit Rating from Morningstar DBRS with Stable Outlook

Lafayette Square USA, Inc. Receives Credit Rating Confirmation

Lafayette Square USA, Inc. announced today that it has maintained a BBB (low) credit rating, confirmed by Morningstar DBRS. This confirmation is a testament to the company’s robust portfolio growth and credit performance. With investments valued at $822.1 million spread across 57 portfolio companies, Lafayette Square demonstrates a weighted average yield of 10.7%. This rating stabilization underlines the company’s continued effective capital management and sound financial practices.

As of March 31, 2026, the company has also reported favorable financial health metrics, including a weighted average interest coverage ratio of 2.6 times, net leverage of 3.9 times, and a loan-to-value ratio of approximately 51.1%. The ongoing fiscal strategy involves a combination of various financing structures, including a revolving credit facility and low-cost long-term financing via SBA debentures at an average rate of 4.95%, alongside $65 million in senior unsecured notes due in 2030.

Lafayette Square's capital structure is designed to support its investment objectives while favorably aligning with overall market performance. Notably, the revolving credit facility is linked to the firm's Goal2030™ performance targets. Achieving these targets could lead to reduced costs of debt, indicating a forward-thinking approach to corporate finance.

Morningstar DBRS also emphasized the importance of managerial support and the Worker Solutions® program in evaluating Lafayette Square’s risk profile. The firm provides substantial managerial assistance to its investment portfolio, leveraging the capabilities of Worker Solutions®, a subsidiary that helps connect clients with third-party employee benefits and advise on workplace policy enhancements. This initiative is particularly aimed at mitigating risks associated with broad economic challenges, showcasing Lafayette Square's commitment to not only grow its business but to positively impact its portfolio companies.

Damien Dwin, the Founder and CEO of Lafayette Square, expressed that