PFLTNot HalalF
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Compliance Status

Not Halal

Screened on Oct 15, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is PennantPark Floating Rate Capital Ltd. (PFLT) halal? Not Halal. Based on AAOIFI screening, PennantPark Floating Rate Capital Ltd. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

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HalalScreener rates PennantPark Floating Rate Capital Ltd. (PFLT) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 15, 2026. Source: https://halalscreener.app/en/stock/PFLT

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

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

241.5% of 30.0% limit
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The verdict above is final and free.

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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding PFLT

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

PennantPark Floating Rate Capital Ltd.

PFLT: Is PennantPark Floating Rate Capital Ltd. Halal?

PennantPark Floating Rate Capital Ltd.

NYSEFinancial ServicesUS

$6.51

Market Cap: 645.9M

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About PennantPark Floating Rate Capital Ltd.

PennantPark Floating Rate Capital Ltd. functions as a business development company (BDC). It pursues a diverse investment strategy, engaging in direct secondary market acquisitions, various debt and equity instruments, and loan investments. The fund principally allocates capital through floating rate loans to middle-market companies, which may be privately held, publicly traded with low liquidity, or publicly listed with modest market capitalization. While its primary geographical focus is the United States, a limited portion of its investments extends to international entities. Individual investment amounts typically range from $2 million to $20 million. Beyond debt, the fund also obtains equity securities, such as preferred stock, common stock, warrants, or options. These are acquired either through direct purchases or as part of its debt financing arrangements. For investments specifically in senior secured loans and mezzanine debt, the fund usually commits between $10 million and $50 million. It preferentially targets companies that are not rated by national credit agencies, though if assessed, their creditworthiness would likely fall between BB and CCC according to the Standard & Poor's system. Up to 30% of the fund's capital may be deployed into non-qualifying assets. These encompass investments in public companies whose securities are not thinly traded or have a market capitalization exceeding $250 million, middle-market firms situated outside the United States, high-yield bonds, distressed debt, private equity stakes, and investment companies as defined under the 1940 Act. Under normal operating conditions, the fund anticipates that at least 80% of its net assets, inclusive of any borrowings for investment, will be dedicated to floating rate loans and other financially similar investments, such as cash equivalents held in money market funds. A substantial 65% of its overall portfolio is projected to consist of senior secured loans. The typical duration for holding its floating rate loan investments is between three and ten years.

Sector: Financial Services · Industry: Asset Management

Why this does not pass

  • Interest-bearing debt is 241.5% of market cap, over the 30% AAOIFI limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 15, 2026

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Compliance History

  1. Not Halalnow

    since Jun 2026

  2. Halal

    until the change above

  3. Not Halal

    until the change above

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

Fiscal: Q3 2026Data source: FMP

Halal Alternatives in Financial Services

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Frequently Asked Questions

Is PennantPark Floating Rate Capital Ltd. (PFLT) halal to invest in?
PennantPark Floating Rate Capital Ltd. (PFLT) 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 PennantPark Floating Rate Capital Ltd. get a F compliance rating?
PennantPark Floating Rate Capital Ltd. (PFLT) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 241.5% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change PennantPark Floating Rate Capital Ltd.'s Shariah verdict?
PennantPark Floating Rate Capital Ltd.'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 PennantPark Floating Rate Capital Ltd. re-screened for Shariah compliance?
PennantPark Floating Rate Capital Ltd. (PFLT) 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: Oct 15, 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.