Moody's rates American Beacon loans Ba2

Moody's Investors Service said it assigned a Ba2 issuer rating to American Beacon Advisors, Inc. and a Ba2 rating to its $170 million term loan B and $15 million revolving credit facility. The outlook is stable.

The agency said American Beacon's rating reflects its substantial leverage at about 4 times annual EBITDA and its relatively modest industry position among rated asset managers, with $50 billion of assets under management as of Sept. 30, but gives particular consideration to its quarter-century of experience as a sponsor of sub-advised mutual funds, as well as traditional pension and cash management services it has provided and is expected to continue to provide its former corporate parent, AMR Corp., and other investors.

In Moody's view, American Beacon particularly benefits from the breadth of its product offerings, which are underpinned by some of the leading investment management firms in the industry, its multi-channel distribution platform and its strong, long-term performance record.

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