PREVIEW-Write-downs to weigh on American Capital, Allied results

viernes 27 de febrero de 2009 18:04 CET

* American Capital, Allied Q4 results on March 2

* Analysts see results weakening on write-downs

* Both cos face liquidity issues

* Allied Capital may suspend dividend

* Both expected to cut jobs through '09

By Adheesha Sarkar

BANGALORE, Feb 27 (Reuters) - Significant write-downs are expected to weigh on quarterly results at American Capital Ltd ACAS.O and Allied Capital Corp (ALD.N: Cotización) and force the two largest U.S. business development companies to cut jobs through the year.

Both companies also face liquidity issues and are in talks with their lenders regarding renegotiation of debt covenants on their credit facilities, and analysts expect Allied Capital to suspend its dividend for 2009.

Significant write-downs are expected at both Allied and American Capital due to deteriorating asset quality.   Continuación...