Fitch turns Fortress outlook to positive

Fitch Ratings said it changed the outlook to positive from stable and affirmed the long-term issuer default ratings of Foundation Holdco LP, the parent company and successor to Fortress Investment Group LLC, and its rated subsidiaries at BB. The agency also affirmed FinCo I LLC's senior secured debt rating at BB.

“The positive outlook reflects the decline in Fortress' leverage following the prepayment of $233 million of secured debt in July 2022,” the agency said in a press release.

For the last 12 months ended June 30, Fortress’ adjusted leverage declined to 4.3x from 5.7x a year ago.

“Further debt prepayments and strong fee-based earnings generation that result in sustained maintenance of adjusted leverage near the current level over the outlook horizon could result in a one-notch rating upgrade,” Fitch noted.

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