View more on these topics

Standard & Poor’s puts F&C Asset Management on negative credit watch

Standard & Poor’s Ratings Services has placed its ‘BBB-/A-3’ long- and short-term counterparty credit ratings on F&C Asset Management PLC on CreditWatch with negative implications.

The ratings agency has also placed the ‘BB’ rating on F&C’s subordinated deferrable under CreditWatch with negative implications.

S&P credit analyst David Tate says: “The CreditWatch placement reflects our view of F&C’s leverage and debt-service metrics, which we understand have been deteriorating over a period of time. In our opinion, these will remain weak, and are likely to fall this year below our 3.5x metric for gross interest coverage by EBITDA.

“Standard & Poor’s aims to resolve the CreditWatch placement in the coming weeks after discussions with the management regarding expectations for an improvement in leverage, debt-service metrics, and fund flow trends now that the extended period of ownership uncertainty has been removed,” added Mr. Tate.


Economic sentiment betters across Europe

Economic sentiment in Europe improved in June, but the level is still below the lows reached in the previous trough in 1992. The Economic Sentiment Indicator (ESI), published by the European Commission, increased by 3.2 points in the EU and by 3.1 points in the eurozone, to 71.1 and 73.3 respectively. The indicator is based […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment