Fitch cuts Man

Fitch Ratings said it downgraded Man Group plc's long-term issuer default rating to BBB from BBB+ and removed it from Rating Watch negative following its $1.7 billion acquisition of GLG Partners Inc.

The outlook is stable.

The downgrade reflects the material weakening of Man's financial flexibility, net cash position and tangible equity as a result of the acquisition, Fitch said.

The downgrade also reflects challenges arising from the integration of GLG, pressure on Man's earnings and funds under management from persistent net outflows and challenges facing the wider hedge fund industry over fund performance, the agency said.

The stable outlook reflects Man's still strong franchise in alternative investment fund management, prudent risk management and still moderate leverage, Fitch added.

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