S&P rates Marsico notes CCC-

Standard & Poor's said it assigned a CCC+ counterparty credit rating to Marsico Holdings LLC and its CCC- rating to its $600 million senior subordinated notes due 2020.

The agency said it has withdrawn the D rating on the $600 million senior subordinated notes due 2016 originally issued by Marsico Parent Co. LLC, as these notes have been exchanged for the new notes that Marsico Holdings LLC issued.

The CCC+ rating on the $1 billion senior secured term loan due December 2014 was not affected by the debt restructuring, although Marsico Holdings LLC is now the designated borrower and has effectively assumed all repayment responsibilities from Marsico Parent Co. LLC, S&P said.

The ratings factor in the high degree of business and financial risks at this boutique asset manager, the agency said.

The recently completed debt restructuring gives Marsico some wiggle room with respect to servicing the $600 million 10 5/8% senior subordinated notes, because the maturity has been extended four years to 2020 and periodic cash interest expense is a function of the available cash generated from fundamental operations during the quarter, S&P said.

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