S&P revises Ares view to stable

S&P said it revised its outlook on Ares Management LP to stable from positive and affirmed its BBB+ issuer credit and senior unsecured debt ratings, as well as the BBB- preferred stock rating.

The agency also assigned an issuer credit rating of BBB+ on Ares Holdings LP, Ares Investments LP and Ares Finance Co LLC.

The outlook on these entities is stable, because the agency views them as core subsidiaries of Ares Management.

S&P said the outlook revision reflects its view that Ares will maintain leverage between 1.5 times and 2 times on a sustained basis over the next 18 to 24 months, which is slightly higher than the previous expectations.

Ares has raised more than $24 billion of capital raised over the trailing-12-months ended June 30.

S&P expects the company to realize the benefits from this capital starting in 2017, but it does not think the growth will be substantial enough to significantly enhance current leverage levels and push leverage below 1.5 times.

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