S&P alters Authentic Brands watch to developing

S&P said it revised Authentic Brands Group LLC’s CreditWatch to developing from positive.

The outlook revision follows the company reporting it agreed to acquire the Reebok business from Adidas AG. S&P originally placed the ratings on positive watch on July 7 after its IPO filing.

“The impact of the final terms of the proposed acquisition on ABG's credit quality is not yet clear. Specifically, we do not have details regarding how ABG will finance the acquisition, any potential changes to company's operating structure or business model, the potential earnings impact on the group, or whether the group will materially change its strategic focus or financial policies beyond the proposed acquisition,” S&P said in a press release.

The developing outlook indicates the agency may raise, lower or affirm ABG’s ratings within the next 90 days after receiving additional information necessary to evaluate the rating, S&P said.

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