CCAP Stock Recent News

I am increasingly cautious on BDCs due to rising non-accruals, weaker earnings, and looser underwriting amid intense competition for private credit deals. Elevated interest rates are suppressing BDC valuations and making it harder for borrowers to service debt, leading to fewer quality investment opportunities. Dividend coverage is weakening across many BDCs, with higher non-accruals and PIK income threatening the sustainability of distributions investors rely on.

Crescent Capital BDC offers a compelling 10.9% dividend yield and trades at a 22% discount to NAV, providing a strong margin of safety. Recent headwinds, including lower NII and some non-accruals, are largely priced in, with the portfolio remaining healthy and well-protected by first-lien debt. Management's confidence is evident through continued regular dividends and two special dividends, signaling belief in near-term NII recovery.

Crescent Capital BDC trades at a significant discount to NAV and offers a high 12.5% yield, but recent performance and total returns have been weak. Rising non-accruals, declining earnings, and weakening distribution coverage raise concerns about portfolio health and dividend sustainability. While the portfolio is diversified and focused on first lien, floating rate debt, higher interest rates are pressuring borrowers and increasing risks.

I'm downgrading Crescent Capital from buy to hold due to weakening fundamentals and rising economic uncertainty. Recent earnings showed sequential declines in total and net investment income, with increasing non-accruals and NAV erosion. CCAP's leverage is above peer average, raising risk, and the probability of a dividend cut is higher if economic conditions worsen.

BOOT, CCAP and HP have been added to the Zacks Rank #5 (Strong Sell) List on May 19, 2025.

Crescent Capital BDC, Inc. (NASDAQ:CCAP ) Q1 2025 - Earnings Conference Call May 15, 2025 12:00 PM ET Company Participants Dan McMahon - Head, IR Jason Breaux - CEO Henry Chung - President Gerhard Lombard - CFO Conference Call Participants Paul Johnson - KBW Robert Dodd - Raymond James Finian O'Shea - Wells Fargo Mickey Schleien - Ladenburg Thalmann Operator Good morning, and welcome to Crescent Capital BDC, Inc. First Quarter Ended March 31, 2025 Earnings Conference Call. Please note that Crescent Capital BDC, Inc. may be referred to as CCAP, Crescent BDC or the company throughout the call.

Crescent Capital BDC (CCAP) came out with quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.63 per share a year ago.

LOS ANGELES, May 14, 2025 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (“Crescent BDC” or “Company”) (NASDAQ: CCAP) today reported net investment income of $0.45 per share and net income of $0.11 per share, for the quarter ended March 31, 2025. Net asset value (NAV) per share was $19.62 at March 31, 2025 compared to $19.98 as of December 31, 2024.

Total Return can be misleading if not supported by NAV growth, as it may include unsustainable distributions and Return of Capital. Behavioral finance shows markets are irrational, making it crucial to consider practical aspects beyond theoretical Total Return calculations. I believe that NAV performance can affect our discretion in the reinvestment choices for the distributions we receive from our savings much more than Total Return.

LOS ANGELES, April 22, 2025 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (“Crescent BDC”) (NASDAQ: CCAP) today announced it will release its financial results for the first quarter ended March 31, 2025 on Wednesday, May 14, 2025 after market close. Crescent BDC invites all interested persons to attend its webcast/conference call on Thursday, May 15, 2025 at 12:00 p.m. Eastern Time to discuss its first quarter ended March 31, 2025 financial results.