Fitch Places Brookfield Asset Management on Rating Watch Negative
--IDR 'BBB';
--Senior unsecured notes 'BBB'.
KEY RATING DRIVERS
The Rating Watch Negative is driven by the application of Fitch's 'Rating Investment Holding Companies' criteria, specifically Fitch's concerns regarding the quality and diversification of dividend flows from investees. Fitch anticipates resolving the Rating Watch over the next two weeks.
RATING SENSITIVITIES
The primary factor that could lead to a negative rating action is a determination that the quality of the subordinated investee dividend streams to Brookfield Asset Management, combined with recurring net fee revenue, are more consistent with a lower IDR.
Fitch does not anticipate positive rating action in the short-to-medium term.
The 'Rating Investment Holding Companies' criteria was the primary analytical approach applied, given the holding company structure. The 'Corporate Rating Methodology' criteria was used to supplement the analysis with respect to recurring fee revenue, management strategy and corporate governance.
Комментарии