S&P rates Virtus, loan BB+

S&P said it assigned its BB+ issuer credit rating to Virtus Investment Partners Inc. and its BB+ issue rating to the firm's proposed term loan.

The outlook is stable.

At the same time, the agency assigned a 3 recovery rating to the term loan, indicating a meaningful recovery of about 50%-70% (lower half of the range) in the event of default.

"Our rating on Virtus reflects the firm's modest scale and diversification, mixed investment performance, and poor organic growth track record over the last several years," S&P credit analyst Clayton Montgomery said in a news release.

The rating also reflects the agency’s expectation that leverage will initially be about 2.7 times on a pro forma basis but should decline to comfortably below 2 times by the end of 2018.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.