EFG Asset Management's Reliability Rating Raised
OREANDA-NEWS. National Rating Agency has raised its reliability rating on EFG Asset Management LLC (EFG AM) to 'АA-'. The outlook is positive.
The rating upgrade reflects EFG AM's considerably strengthened position in a number of its markets, and high profitability. The company has demonstrated strong performance in the area of asset management over the past year, and maintains a low-risk and fairly liquid portfolio of assets under management (AuM). It has solid strategic partners and key customers, and may count on the partners' resources and capability to provide support.
The rating recognizes EFG AM's strong corporate governance and business process management procedures and the fact that its risk management system is being upgraded. The company has a high-skilled management team with considerable experience in handling investment projects in different market segments. The positive outlook reflects NRA's expectation that the company will continue to increase its AuM portfolio and expand its market share.
At the same time, NRA notes that the fast asset growth may raise the level of asset risks relative to the company's capital, especially as EFG AM has never handled assets as sizable as they are becoming. Not all of the company's procedures are formalized and tested. The rating is also constrained by EFG AM's low diversification by business line.
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