Outlook for Aurora Capital Management AM's Reliability Rating Negative
OREANDA-NEWS. National Rating Agency has affirmed its 'AA-' reliability rating on Aurora Capital Management AM LLC (ACM). The outlook assigned to the rating is negative.
The negative rating outlook reflects the considerable reduction of assets under company's management in the period from Sept. 30 to Dec. 2, 2014, resulting from the withdrawal of funds from a key customer's account, as well as the arising need to revise ACM's growth strategy and potential associated costs. The outlook may materialize if the company's key performance indicators (such as earnings, profitability and liquidity) were to worsen, or its AuMs were to further stagnate or diminish.
Despite the above rating weaknesses, NRA maintains its reliability rating on ACM at 'AA-', considering the support from a strong beneficiary owner and the development of the company's new key business segment (managing of mutual funds). The analysis of ACM's 3Q 2014 financials has shown that the company is maintaining its strong profitability, liquidity metrics, as well as the earnings and equity growth pace.
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