Fitch: GP unaffected

Fitch said that GP Investments Ltd.'s pledge of shares involving its private equity subsidiary has no effect on its ratings or outlook.

The company's foreign-currency issuer default rating is B and its senior secured rating is B/RR4-.

The outlook is stable.

The senior secured rating recognizes the liquidity in the coupon reserve, Fitch said.

GP's ratings are supported by conservative leverage levels, the franchise of the company and the experience of the management team, which bodes well for positive prospects going forward.

The ratings are constrained by the highly concentrated nature of the intended investment portfolio, the negative cash flow implied by recurring fixed expenses versus recurring income and the uncertainty related to the maturation period of the investment portfolio and GP's ability to realize investment gains, Fitch said.

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