Fitch changes HRG outlook to stable

Fitch Ratings said it affirmed the long-term issuer default rating of HRG Group, Inc. at B and revised the outlook to stable from positive.

The agency also affirmed HRG's senior secured debt at BB-/RR2 and senior unsecured debt at B/RR4. The debt level affirmations are inclusive of the additional $160 million of senior secured notes and $140 million of senior unsecured notes issued by HRG on May 11.

Fitch said the outlook revision follows HRG’s completion of several transactions and recent asset performance challenges at certain subsidiaries, which in combination have moderated Fitch's view of potential upward rating momentum over the outlook horizon. These events include two debt issuances, which have resulted in higher leverage (debt/equity), and reduced dividends from subsidiaries, which has resulted in weaker dividend coverage of holding company interest expenses.

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