Moody’s could lower RCS Capital

Moody's Investors Service said it placed RCS Capital Corp.’s B3 corporate family rating, B3 $575 million senior secured first-lien term loan, B3 $25 million senior secured first-lien revolving credit facility and Caa2 $150 million senior secured second-lien term loan on review for downgrade.

The actions follow a series of announcements made by RCS and affiliated entities that together indicate a heightened level of uncertainty concerning RCS' strategic priorities and prospects.

Moody's said the termination of Apollo Global Management, LLC's (unrated) planned investment in AR Capital, LLC (unrated) heightens the uncertainty concerning the value of RCS' investment banking and capital markets activities, which are dependent on transactions with products sponsored by AR Capital to generate the bulk of their income.

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