Moody's changes Gamco outlook to negative

Moody's Investors Service said it affirmed Gamco Investors, Inc.’s Baa3 senior debt rating and changed the outlook to negative following the company's announcement of its plans for a corporate restructuring that will involve the spinoff of some businesses into a new publicly traded entity. Gamco explained that each company will have a capital structure and capital return policy appropriate to its specific business.

Due to the uncertainty surrounding how leverage and revenue-generating assets are redistributed in the reorganization, the ratings of Gamco may be affected. Moody's said its analysis will focus on the resultant capital structure, risk profile, earnings capability and future prospects at Gamco following the spinoff.

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