Fitch rates Lazard notes BBB

Fitch Ratings said it expects to assign a rating of BBB to Lazard Group LLC's proposed $500 million senior unsecured notes issuance under its shelf registration.

The proposed notes are expected to mature in November 2020.

The expected debt issuance does not affect Lazard's existing long-term issuer default rating of BBB or its other debt ratings.

The proceeds from the proposed notes are expected to be used to repay Lazard's $528.5 million senior notes due May 15, 2015.

Fitch said it expects the prepayment premium on the 2015 notes to be manageable within the context of Lazard's Sept. 30, 2013 cash balance.

Pro forma leverage is not expected to change materially while interest coverage should improve as the proposed notes are expected to have a lower coupon, the agency said.

The proposed notes are expected to rank equally in right of payment with existing senior unsecured debt, the agency said.

The outlook remains positive.

The company also has a long-term foreign-currency issuer default rating of BBB-, long-term local-currency issuer default rating of BBB-, short-term foreign-currency issuer default rating of F3, short-term local-currency issuer default rating of F3, along with a BBB- foreign-currency senior unsecured rating, BBB- local-currency senior unsecured rating, A-(pol) national long-term rating and A-(pol) national senior unsecured rating.

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