S&P rates Invesco notes A

Standard & Poor’s said it assigned an A rating to Invesco Finance plc’s proposed issuance of senior unsecured notes due in 2026.

The agency said it expects the size of the offering to be about $500 million. The company’s long-term issuer credit rating is A and the outlook is stable.

The proceeds will be used to pay down the drawn amount on the company’s revolving credit facility and to boost liquidity on the balance sheet so that it has about $1 billion of cash in excess of its regulatory requirements in Europe, the agency said.

Invesco Finance is a wholly owned subsidiary of Invesco Holding Co. Ltd. The notes will be fully and unconditionally guaranteed by Invesco Ltd., the ultimate parent entity, S&P said.

Pro forma for the transaction, the agency said it expects total debt-to-adjusted EBITDA to be less than 1x, the agency said.

The ratings reflect the company’s satisfactory business risk profile due to its good market position, multiple distribution channels and good diversification of assets, S&P said.

The ratings also consider Invesco’s minimal financial profile given its expectation that total debt-to-adjusted EBITDA will remain less than 1.5x, the agency said.

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