Fitch revises Allfunds view to stable

Fitch Ratings said it revised Allfunds Bank SA’s outlook to stable from negative while affirming the bank’s long-term issuer default rating at BBB+. Fitch also affirmed LHC3 plc’s long-term IDR and its senior secured payment-in-kind toggle notes at BB-. The outlook on LHC3 is stable.

“The rating actions factor in the expected impact from the strategic agreement of AFB with BNP Paribas to integrate part of BNP Paribas Securities Services into AFB, including the management of distribution contracts of third-party investment funds, the Banca Corrispondente business in Italy and dealing and execution services,” Fitch said in a press release.

The revision to stable reflects Fitch’s expectation the contribution from recently acquired businesses will compensate for any erosion in earnings in case of renewed market volatility and pressure on market valuations of financial assets, the agency said.

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