Truist cut its price target on FSK to $17, citing credit risks and high rates, warning dividends may be at risk.

Truist Financial kept its "Hold" rating on FS KKR Capital Corp. (FSK) but reduced its price target to $17, citing elevated credit risks and a tough economic climate marked by inflation and high interest rates. The firm warned that rising borrowing costs and potential loan defaults could limit FSK’s ability to maintain or grow dividends, despite its attractive yield. Truist emphasized management’s capital decisions and credit market conditions as key factors, calling FSK a defensive option for income investors amid ongoing market volatility.