Fitch lifts Ares view to positive

Fitch Ratings said it affirmed the long-term issuer default ratings of Ares Management, LP and its subsidiaries at BBB+.

The outlook also was revised to positive from stable.

The outlook revision was a result of a periodic peer review of the alternative investment manager industry, which is comprised of seven publicly rated global firms, Fitch explained.

The agency said the sector has a stable outlook, reflecting the relative stability of core operating fundamentals, given the locked-in nature of a large portion of fee revenue, modest and decreasing leverage for higher rated firms and manageable near-term obligations relative to available liquidity resources.

While fundraising for the industry slowed in 2018 from the breakneck pace recorded in 2017, the rated peer group continued to report robust inflows during the first six months of 2018, Fitch said.

Fundraising is expected to remain strong into 2019, despite the meaningful amount of uncalled capital in the sector to invest, the agency said.

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