S&P: Ares view to positive

Standard & Poor’s said it revised the outlook on Ares Management LP to positive from stable.

The agency also said it affirmed the company’s BBB+ issuer credit and senior unsecured debt ratings.

The positive outlook reflects an expectation that Ares will have a stronger financial profile following the cancellation of its planned merger with Kayne Capital Advisors and redemption of the $325 million notes issued to fund a portion of the proposed transaction, S&P said.

The agency said it now believes that Ares, on a stand-alone basis, may operate with debt-to-adjusted EBITDA of less than 1.5x.

S&P also said, however, that the original planned combination of the companies indicates that Ares is willing to maintain a more aggressive financial risk profile.

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