Apollo Global Management Inc.

The stable outlook reflects our expectation that Apollo will operate with debt to adjusted EBITDA of 1.5x-2.0x during the next one to two years. We expect fee-related earnings to remain fairly stable. We could lower the ratings if Apollo operates with leverage above 2.0x, which could stem from a material deterioration in earnings or surplus cash. We do not anticipate raising the ratings during the next one to two years. However, if Apollo operates with net debt to adjusted EBITDA comfortably less than 1.5x on a sustained basis and interest coverage above 10x, amid strong earnings growth, we would consider an upgrade. We expect fee-related earnings to grow in the mid-single digits in 2020 and in the low teens in

...Apollo Global Management Inc.'s credit platform is unique. Compared with other asset managers, Apollo has a larger proportion of assets in permanent capital vehicles, including Athene and Athora, which make up a meaningful portion of Apollo's fee-generating assets under management (FGAUM). The company has a good track record of investment performance. Apollo has generated strong returns from opportunistic investments, and we believe the company is well positioned to grow credit investments amid current market dislocations. Additionally, it has pivoted its Private Equity Fund IX to distressed debt investments. Apollo's leverage has some cushion at the current rating. We expect the company to operate with net debt to adjusted EBITDA at the lower end of 1.5x-2.0x over the next two years, resulting in a moderate cushion at the current 'A-' rating....

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