Morningstar DBRS confirmed Trinity Capital Inc.’s investment‑grade rating of BBB‑low on January 28, 2026 and upgraded the rating trend from Stable to Positive. The agency’s decision follows the company’s recent debt refinancing and the launch of a new Small Business Investment Company (SBIC) fund, both of which have strengthened Trinity’s capital structure and lowered its cost of capital.
Trinity’s BBB‑low rating has been in place since the agency’s January 2025 confirmation, when the trend was listed as Stable. The shift to a Positive outlook signals that Morningstar DBRS now views the company’s financial profile and growth strategy as improving, a change that can enhance borrowing terms and broaden investor appeal. The rating upgrade is a material event that can influence the company’s future debt issuance and capital‑raising strategy.
The debt refinancing involved the replacement of near‑term maturities—an August 4.375% note and a December 4.25% note due in 2026—with new debt that carries a lower interest rate. The refinancing reduces interest expense and extends the maturity profile, thereby improving leverage ratios and freeing cash for growth initiatives. Morningstar DBRS noted that the refinancing also mitigates the risk of margin compression that could arise if the company were forced to refinance at higher rates later in the year.
The new SBIC fund, green‑lit by the Small Business Administration in June 2025, will provide $275 million of investable capital. Managed under Trinity’s registered investment advisor, the fund will generate management and incentive fees for shareholders and expand the firm’s reach into small‑business lending. Trinity’s history of SBIC funds—its third fund launched in 2016 with $600 million—demonstrates its expertise in leveraging SBA guarantees to support growth‑oriented companies, reinforcing the agency’s view of a diversified funding profile.
Morningstar DBRS explained that the combination of the debt refinancing and the SBIC fund launch has improved Trinity’s capital structure, lowered its cost of capital, and broadened its funding sources. The agency highlighted the company’s resilient earnings, acceptable credit performance over the past year, and a diversified funding profile as key drivers of the Positive trend. Management’s focus on first‑lien loans—approximately 85% of the portfolio as of Q3 2025—provides a strong credit buffer, while the firm’s internal management structure and equity capital raises support continued growth.
CEO Kyle Steven Brown emphasized that the company’s recent performance—record platform assets under management and strong net investment income—positions Trinity to capitalize on favorable market conditions. He noted that the new SBIC fund and the debt refinancing are part of a broader strategy to scale operations, maintain resilient earnings, and manage credit risk, reinforcing confidence in the company’s long‑term trajectory.
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