S&P trims Russell Investments Cayman

S&P said it lowered its ratings on Russell Investments Cayman Midco Ltd. to B+ from BB-.

“We expect Russell's leverage to be above 5x and EBITDA interest coverage below 2.0x in the next 12 months. The company's revenue declined 17% in 2022 and 12% year over year in the first half of 2023, primarily owing to net outflows and market volatility leading to lower investment management fee revenue. EBITDA margins also fell, to 17% in 2022 and 15% for the 12 months ended June 30, 2023, from approximately 20% in previous years, causing a meaningful decline in EBITDA,” S&P said in a press release.

The agency said it forecasts Russell’s leverage, per its adjusted calculations, to increase in 2023 to about 9x from 6.7x in 2022.

The outlook is stable.

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