FS Credit Opportunities Corp.

FSCO: Is FS Credit Opportunities Corp. Halal?

FS Credit Opportunities Corp.

NYSEFinancial ServicesUS

$4.95

-1.00%

Market Cap: 1.0B

Compliance Status

Not Halal

Screened on Jul 18, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is FS Credit Opportunities Corp. (FSCO) halal? Not Halal. Based on AAOIFI screening, FS Credit Opportunities Corp. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Business activity

What the company sells is permissible.

Passed

Company debt

Close to the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

28.9% of 30.0% limit

What this means for you

Most scholars advise not holding FSCO

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About FS Credit Opportunities Corp.

FS Credit Opportunities Corp. is an American closed-end fixed income fund that commenced operations on January 28, 2013. Established by Franklin Square Capital Partners, it is jointly overseen by FS Global Advisor, LLC and GSO Capital Partners LP. The fund's primary objective is to generate strong total returns through strategic investments in global fixed income markets, particularly emphasizing opportunities within Europe and the United States. It allocates capital across various industries, focusing on a broad spectrum of credit instruments, including secured and unsecured loans (both fixed and floating rate), bonds, and other debt instruments utilized by companies for operational funding. A key component of its investment methodology is an event-driven approach, targeting companies deemed undervalued by the market that are expected to benefit from significant corporate actions such as mergers, acquisitions, or reorganizations.

Sector: Financial Services · Industry: Asset Management

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 18, 2026

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is FS Credit Opportunities Corp. (FSCO) halal to invest in?
FS Credit Opportunities Corp. (FSCO) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did FS Credit Opportunities Corp. get a F compliance rating?
FS Credit Opportunities Corp. (FSCO) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 28.9% (limit 30%); interest-bearing deposits of 40.4% (limit 30%); prohibited income of 112.40% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change FS Credit Opportunities Corp.'s Shariah verdict?
FS Credit Opportunities Corp.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is FS Credit Opportunities Corp. re-screened for Shariah compliance?
FS Credit Opportunities Corp. (FSCO) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.