Moody's downgrades Marsico

Moody's Investors Service said it downgraded Marsico Parent Co., LLC's corporate family rating to Caa3 from B3, senior secured bank facilities to Caa1 from B1 and senior subordinated notes to Ca from Caa1 and the senior notes of Marsico Parent Holdco, LLC to Ca from Caa2.

Marsico is the parent company of Marsico Capital Management, LLC and Marsico Fund Advisors, LLC.

The outlook is negative.

The agency said the downgrade reflects its estimates of the company's reduced corporate valuation. Marsico's debt load appears to Moody's to be unsustainable at current earnings levels. Some of the debt is likely to be paid down through new equity proceeds before the bulk of it begins maturing in 2014, the agency said, but the amount that could be raised in a transaction over the near term is dependent in part on the company's corporate valuation, which has been severely impacted by the decline of assets under management.

The negative outlook reflects the risk that the firm faces possible further declines in the equity markets and lost relationships in some of its four primary segments, Moody's said.

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