Moody's cuts Russell Investments

Moody’s Investors Service said it downgraded Russell Investments Cayman Midco Ltd.’s senior secured first-lien term loan and senior secured revolving credit facility to Ba3 from Ba2. The loans were issued by Russell Investments US Institutional Holdco, Inc. and Russell Investments US Retail Holdco, Inc. The agency also lowered the corporate family rating to Ba3 from Ba2 and the probability of default rating to Ba-PD from Ba2-PD.

“The downgrade to Ba3 reflects the further deterioration in the company's key credit metrics since its outlook was changed to negative from stable in April 2021. The company's leverage has increased by over a turn in 2022 driven by a combination of significant negative market action, net outflows and continued fee compression. Russell Investment's leverage stood at 5.9x at the end of Q3 2022, up from 4.6x following the most recent dividend recapitalization loan in April 2021,” Moody’s said in a press release.

The agency said it forecasts Russell's leverage to remain in the mid-to-high 5x range at least through H1 2023, citing lower assets under management level.

The outlook is negative.

© 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.