OFS Credit downgraded to Neutral from Buy at Ladenburg

Ladenburg analyst Mickey Schleien downgraded OFS Credit to Neutral from Buy and removed the firm’s prior price target. The current weakness in the stock price has caused larger common share issuance for the 80% of the current distribution paid in stock and given that the firm envisions adjusted NII per share declining below the current distribution “under several scenarios” it would not be surprised if OFS Credit reduces its dividend, says the analyst, who reminds investors that “CLO-oriented funds like OCCI may exhibit very volatile results” and cautions investors “should look at the fund as an investment which should be held through a cycle.”