S&P cuts Resolute Investment facility

S&P said it affirmed its B+ issuer credit rating on Resolute Investment Managers Inc.

The outlook remains stable.

At the same time, the agency lowered the rating on the first-lien secured credit facility to B+ from BB- and affirmed the B- second-lien secured debt rating.

S&P also revised the recovery rating on Resolute's first-lien credit facility to 3 from 2, reflecting an expectation for meaningful (60%) recovery in the event of default. The 6 recovery rating on the company's second-lien secured term loan remains, reflecting negligible (0%) recovery.

Resolute posted double-digit percent growth in assets under management during 2017, mainly as a result of market appreciation and the acquisition of Shapiro Capital Management LLC, the agency said.

While increasing assets under management boosted cash flow generation, the company's leverage remained around 5x in 2017 as the company funded the acquisition of Shapiro Capital Management with add-ons to both its first- and second-lien term loans.

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