Advisor Group Holdings Inc. Assigned 'B+' Issuer Credit And Debt Ratings; Outlook Is Stable

Advisor Group Holdings Inc. has a sizeable market position as one of the largest networks of independent financial advisors, a capital-light business model, and strong cash flow generation. Counterbalancing these positive factors are Advisor Group's desire to pay out a sizeable dividend to investors, pushing tangible equity negative. We are assigning our 'B+' issuer credit rating on Advisor Group. At the same time, we are assigning our 'B+' issue rating on the proposed $600 million first-lien term loan. The outlook is stable, reflecting our expectation that the company will grow revenues, maintain an EBITDA margin of about 10%, and keep its aggressive capital policy. NEW YORK (S&P Global Ratings) July 26, 2018--, S&P Global Ratings said today it assigned its

...+ Advisor Group Holdings Inc. has a sizeable market position as one of the largest networks of independent financial advisors, a capital-light business model, and strong cash flow generation. + Counterbalancing these positive factors are Advisor Group's desire to pay out a sizeable dividend to investors, pushing tangible equity negative. + We are assigning our 'B+' issuer credit rating on Advisor Group. At the same time, we are assigning our 'B+' issue rating on the proposed $600 million first-lien term loan. + The outlook is stable, reflecting our expectation that the company will grow revenues, maintain an EBITDA margin of about 10%, and keep its aggressive capital policy. NEW YORK (S&P Global Ratings) July 26, 2018--, S&P Global Ratings said today it assigned its 'B+' long-term issuer credit rating on Advisor Group Holdings Inc. The outlook is stable. We also assigned our 'B+' issue rating to the firm's proposed $600 million first-lien term loan. Our ratings on Advisor Group are based...

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