Moody’s rates Russell Investments, loans Ba2

Moody's Investors Service said it assigned a Ba2 corporate family rating and a Ba2-PD probability of default rating to the newly formed holding company Emerald Acquisition Ltd. (Russell Investments).

Concurrently, the agency assigned Ba2 ratings to a $650 million seven-year senior secured term loan and a $50 million revolving credit facility issued by co-borrowers Russell Investments US Institutional Holdco, Inc. and Russell Investments US Retail Holdco, Inc.

The credit facilities will be used to partially finance the previously announced $1 billion buyout of Russell Investments by two private equity sponsors – TA Associates and Reverence Capital Partners – from the London Stock Exchange Group.

The outlook on all ratings is stable.

Moody’s said the Ba2 corporate family rating reflects Russell Investments’ leading position in the large and growing outsourced chief investment officer market segment and its established position as a multi-asset solutions provider for institutional and retail clients.

The rating is also supported by solid cash flow generation driven by consistently high asset retention rates and the company's broad geographic footprint, the agency said.

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