S&P puts Advisor Group on watch

S&P said it placed the B+ ratings on Advisor Group on CreditWatch with negative implications.

The agency said it will resolve the CreditWatch when it gets further clarity on the company's prospective debt structure and terms and covenants to be able to assess its debt-service capacity and overall financial flexibility.

Private equity firm Reverence Capital Partners announced it is acquiring Advisor Group from Lightyear Capital and PSP Investments, S&P explained.

The agency said it believes that a significant portion of the purchase price will be debt-financed.

S&P also said it thinks there is uncertainty surrounding Advisor Group's prospective capital structure subsequent to the close of the acquisition.

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