S&P lowers Russell Investments

S&P said it lowered its issuer credit rating on Russell Investments Cayman Midco Ltd. to BB- from BB.

The outlook is stable.

At the same time, the agency also lowered the issue rating on the company's first-lien facility to BB- from BB and assigned a 4 recovery rating, indicating an expectation for average (45%) recovery in the event of default.

S&P also removed all the ratings on the company from CreditWatch, where they were placed with negative implications on May 29.

Russell received commitments from lenders for the issuance of a $300 million term loan add-on to fund a special dividend, the second in two years since TA Associates and Reverence Capital Partners the firm, S&P explained.

“We anticipate that following this debt deal, leverage will remain close to 4.5x at the end of 2018,” the agency said in a news release.

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