Fitch: Tullett Prebon view positive

Fitch Ratings said it revised Tullett Prebon plc's outlook to positive from stable and affirmed the long-term issuer default rating at BB+ and the group's €150 million subordinated debt at BB-.

The outlook reflects expectation that net debt and leverage ratios are capable of further improvement over the medium-term despite potential earnings pressure for the inter-dealer broker following a period of very strong profitability amid extreme market volatility the past year, according to the agency.

The long-term issuer default rating reflects the low credit and market risk profile of its operating subsidiaries, their good operating cash flow, their low funding requirements and its good franchise, Fitch said.

It also takes into account the group's relatively small shareholder's funds, cyclicality of certain revenue lines, operating risks inherent in an IDB business and the leverage taken on following a debt-financed return of capital to shareholders in March 2007, the agency noted.

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