NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned a 'BBB' rating to the $275 million senior unsecured credit facility of FIG LLC, a wholly owned subsidiary of Fortress Investment Group LLC (collectively with its related entities, Fortress), maturing in January 2021, jointly and severally guaranteed by certain Fortress subsidiaries. See the full list of rating actions at the end of this release.
KEY RATING DRIVERS
The unsecured debt rating has been equalized with the 'BBB' Issuer Default Rating (IDR) of Fortress (affirmed by Fitch on Nov. 5, 2015) reflecting average recovery prospects given the absence of secured debt in Fortress' funding profile post-refinancing. The new credit facility will be used initially to refinance Fortress' existing senior secured revolving credit facility, set to mature in February 2016, and may be drawn upon in the future for general corporate purposes.
RATING SENSITIVITIES
The unsecured debt rating is equalized with Fortress' IDR and, therefore, would be expected to move in tandem with any changes to Fortress' IDR.
Positive rating momentum would be limited to a change in Fortress' IDR, which could result from continued fee-earning assets under management (FAUM) growth, operating consistency, and further revenue diversity, while maintaining conservative leverage and liquidity positions.
Conversely, negative rating pressure on Fortress' IDR could result from a reduction in management fees resulting from significant redemption activity, material declines in asset values, and/or an inability to raise follow-on funds, a diminished liquidity profile, or materially higher leverage. Were Fortress to assume material secured debt, such that recovery prospects for the unsecured credit facility were materially affected, this could result in the unsecured debt rating being notched down from the IDR.
Fortress Investment Group, LLC, a Delaware incorporated limited liability company, is a global alternative investment manager specializing in private equity, credit funds, permanent capital vehicles and hedge funds. As of Sept. 30, 2015, AUM amounted to $74.3 billion. The company's stock is listed on the NYSE under the ticker 'FIG'.
Fitch has assigned the following ratings:
Fortress Investment Group LLC
Fortress Operating Entity I L.P.
Principal Holdings I L.P.
FIG LLC
--Unsecured debt at 'BBB'.
Additional information is available on www.fitchratings.com
Applicable Criteria
Global Non-Bank Financial Institutions Rating
Criteria (pub. 28 Apr 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865351
Additional
Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=998136
Solicitation
Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=998136
Endorsement
Policy
https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31
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