SAO PAULO & RIO DE JANEIRO--(BUSINESS WIRE)--Fitch Ratings has affirmed and withdrawn the International Scale Asset Manager Rating of 'High Standards' for Schroder Investment Management Brasil Ltda. (Schroder Brasil). At the time of the withdrawal the Rating Outlook was Negative.
KEY RATING DRIVERS
Schroder Brasil's 'High Standards' rating reflects Fitch's opinion that the company's investment platform and operational framework are strong relative to the standards applied by institutional investors in international markets.
The affirmation of Schroder Brasil's rating factors in its integration with the parent, Schroders Plc (Schroders Plc, IDR 'A+'/Outlook Stable). The global strength and franchise of the parent company mitigate concerns with respect to staff turnover and near- to intermediate-term business challenges. Schroder Brasil's investment process as well as the risk controls and compliance areas also benefit from this relationship.
The Negative Outlook reflects the challenges Schroder Brasil faces due to restructuring of its operations, which resulted in substantial staff turnover and modifications to its investment process as the firm repositions itself following a significant reduction in assets under management (AUM), and net losses reported since 2011.
The rating for Schroder Brasil applies to its activities in the local Brazilian market managing traditional funds. The group's main company, Schroder Investment Management, based in London, has an International Scale Asset Manager Rating of 'Highest Standards/Outlook Stable'.
Fitch has withdrawn the rating as Schroder Brasil has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the rating. Accordingly, Fitch will no longer provide rating or analytical coverage for Schroder Brasil.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Asset Manager Rating Criteria' (May 6, 2014).
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=979719
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