Concurrently, Fitch has assigned a long-term Issuer Default Rating (IDR) of 'A-' to
KEY RATING DRIVERS
The expected rating on the new unsecured notes reflects joint and several guarantees on indebtedness by the various subsidiaries which collect all of the fee, carry, and investment income earned by Apollo. Therefore the rating of the unsecured notes is expected to be equalized with the Issuer Default Rating of Apollo.
The rating of the unsecured notes is expected to be equalized with the Issuer Default Rating of Apollo. Therefore, any change in Apollo's rating would have a commensurate impact on the rating of the unsecured notes.
The Stable Outlook on the various operating subsidiaries of Apollo reflects Fitch's expectations that management will continue to generate stable management and advisory fees, grow/retain FAUM through the raising of new and expansion of existing funds, albeit at a much more moderate pace near-term, sustain recent operating margins, operate with relatively low leverage, and retain a solid liquidity profile in order to meet co-investment commitments to funds.
Declines in investment performance, a key man event, and/or legislative risk which negatively impact the company's ability to raise FAUM and generate fees, meaningful increases in leverage, and/or impairment of the liquidity profile could result in negative rating action. Furthermore, ratings could be adversely affected if the relationship between Apollo and Athene were to materially change as a result of regulatory scrutiny, outsized fines/penalties or loss of management or sub-advisory fees.
Conversely, positive rating momentum could develop from a demonstrated ability to operate at the current size, scale and margin level over an extended period of time. An increase in fee diversity, lower leverage, and/or stronger liquidity would also be viewed favorably.
Apollo is a global alternative investment manager specializing in private equity, credit and real estate. FAUM amounted to
Fitch has assigned the following expected rating:
--Unsecured debt 'A-(EXP)'.
Fitch has also assigned the following rating with a Stable Outlook:
--Long-term IDR 'A-'.
Existing ratings for Apollo are as follows:
--Long-term IDR 'A-';
--Unsecured debt rating 'A-'.
The Rating Outlook is Stable.
Additional information is available at 'www.fitchratings.com'
--'Global Financial Institutions Criteria' (
--'Investment Manager and Alternative Funds Criteria' (
Global Financial Institutions Rating Criteria
Investment Manager and Alternative Funds Criteria
Mohak Rao, CFA
Source: Fitch Ratings
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