S&P: 3i Group unaffected

Standard & Poor's said the announcement by 3i Group plc (A+/stable/A-1) that it intends to return £800 million of cash to shareholders will not affect the ratings on the group.

This will be the third large, consecutive annual capital repatriation by 3i, which reflects the highly favorable trading environment during this period and 3i's strong performance therein, the agency said. The planned capital return is consistent with 3i's target leverage range of 30%-40%, which S&P said it considers to be satisfactory for the ratings.

The agency said it expects 3i to maintain high cash balances and modest leverage appetite, relative to rated private equity peers. In spite of the strong performance, an upgrade is unlikely given the business profile, S&P said and would require a very conservative leverage policy and a marked increase in less volatile fee income.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.