FSCO: The Worst Is Over, Time To Buy (Rating Upgrade)

FS Credit Opportunities is upgraded to a buy as it trades at a 27% discount to NAV, offering a 13.5% yield. FSCO's portfolio is defensively positioned with minimal software exposure and heavy allocation to senior secured loans. Management has reduced debt from $453M to $285M and built a record $403M cash buffer, enhancing resilience.