...Strengths: Weaknesses: + Sizable market position as the second-largest independent financial adviser network + Solid proportion of revenues are recurring in nature + Low credit and market risks + Earnings are sensitive to equity market and interest rate fluctuations + Aggressive financial management, given its private equity ownership + Weak debt service capacity Outlook The stable outlook reflects our expectation that Advisor Group's earnings and debt service coverage will be under pressure in 2020 but the company will maintain sufficient liquidity and comfortable cushion relative to its springing leverage covenant. We could lower the ratings if the company's leverage covenant is activated and minimal cushion is maintained versus the 7.5x threshold. We could also lower the ratings if Advisor Group's debt service coverage (using covenant EBITDA) approaches 1.2x, liquidity deteriorates, or we observe meaningful attrition of advisors from the company's platform. An upgrade is unlikely over...
