S&P affirms GP Investments

Standard & Poor's said that it affirmed the BB- long-term counterparty credit rating on GP Investments Ltd.

The outlook is stable.

The rating on GP mainly reflects an insufficient level of recurring cash revenues to cover operating and financial expenses as well as the high geographical concentration of GP's investment portfolio in Brazil and the inherent volatility of the private equity business, the agency said.

The ratings also consider GP's leading position in the Brazilian private equity industry, the large experience and strong reputation of its team of professionals, good track record of most of its investments, good liquidity and good performance of the Brazilian economy, the agency added.

The stable outlook reflects GP's good liquidity, adequate debt structure and the expectation that the good Brazilian economy will benefit the company's investment portfolio during 2011, S&P said.

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