Moody’s might cut American Beacon

Moody's Investors Service said it placed American Beacon Advisors, Inc.’s Ba2 corporate family rating on review for downgrade.

The agency also placed the $170 million term loan B rating and $15 million revolving credit facility rating, both rated Ba2, on review for downgrade.

The rating actions follow the company’s Nov. 21 announcement that private equity sponsors Kelso & Co. and Estancia Capital Management will acquire it. The transaction is expected to close in the second quarter of 2015.

American Beacon, formerly owned by AMR Corp., parent of American Airlines, was partially sold to private equity funds managed by Pharos Capital Group and TPG Capital. AMR still retained a small ownership interest and American Beacon continues to provide cash and pension management services to its former parent. The company manages and distributes sub-advised mutual funds for defined contribution retirement and retail investors, as well as pension and cash management programs for AMR and other institutional investors.

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