S&P warns on Man Group’s GLG acquisition
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Standard & Poor’s has placed its ’BBB+/A-2’ long- and short-term counterparty credit ratings on hedge fund manager Man Group on CreditWatch with negative implications, following the announcement that it plans to acquire GLG Partners .
S&P says the transaction will lead to a weakening in Man’s strong liquidity profile and capitalisation potentially offset in part by an improvement to its business profile.
Standard & Poor’s credit analyst Nigel Greenwood says: “The CreditWatch placement reflects our opinion that Man’s liquidity and capitalisation may no longer be commensurate with the current ratings and our uncertainty over the degree to which GLG will enhance Man’s business profile and future cash-flow.”
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