S&P shifts Allspring view to negative

S&P said it revised its outlook for Allspring Buyer LLC to negative from stable and affirmed its BB- issuer and senior secured debt ratings. The recovery rating on the company's debt is unchanged at 4, indicating an average (40%) recovery in default.

“The outlook revision reflects Allspring's significantly lower asset values due to the current market pullback as well as net outflows, which we expect to hurt earnings in 2022 and 2023. As of June 30, 2022, assets under advisement (AUA), which incorporates assets under management and non-discretionary assets, were $537 billion, down $112 billion, or 17%, from $649 billion at year-end 2021,” the agency said in a press release.

The weaker outlook mirrors the view that Allspring’s leverage over the next 12 months could exceed 5x, S&P said.

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