S&P upgrades Aretec

S&P said it raised the issuer credit rating on Aretec Group Inc. to B from B-, along with the rating on the company's first-lien debt, including the proposed incremental $105 million issuance, to B from B- and second-lien debt to CCC+ from CCC.

Aretec Group meaningfully improved its operating performance in 2018 with 29% growth in adjusted EBITDA and 15% growth in net revenues, S&P explained.

The company has announced a proposed $105 million incremental first-lien issuance primarily to purchase select assets of the broker-dealer arm of Foresters Financial, the agency said.

The stable outlook reflects a belief that over the next 12 months, Aretec Group will continue to grow its EBITDA and net revenues while maintaining adequate covenant cushions.

The agency said it expects the company will maintain its improved adviser retention rates and continue to limit its exposure to market and credit risks.

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