Moody's affirms Man Group

Moody's said it affirmed the ratings of Man Group plc, including its senior debt rating at Baa1, subordinated debt rating at Baa2, Man Group Finance Inc.'s guaranteed senior debt rating at Baa1 and guaranteed subordinated debt at Baa2.

The outlook is stable.

The affirmation follows an announcement by Man that they intend to separate Man Financial, its brokerage business, through an initial public offering. Man Group intends to return the sale proceeds to shareholders shortly after completion, the agency said.

In Moody's view, the loss of a diversifying asset with an earnings stream that currently contributes between 10% and 15% of Group profits is negative from a credit perspective. The transaction will reduce the earnings power and diversification of the existing group, Moody's added.

However, the existing ratings have been affirmed due to the anticipated continued strong growth and profitability of the alternative asset management business, its leading position in the alternative asset management sector and its ongoing improvements in liquidity and financial flexibility, the agency said.

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