Apollo Global Management Inc.

Our positive outlook on Apollo indicates we could raise the ratings following the close of its announced merger with Athene, based on our expectation that the group credit profile will strengthen to 'a' and our prospective assessment of Apollo as core to the combined group. We also expect Apollo's stand-alone credit profile will not weaken over the next few quarters, with continued solid investment performance and stable leverage of 1.5x-2.0x as measured by debt to adjusted EBITDA. We could revise our outlook to stable if: Apollo's stand-alone credit profile weakens, for example if leverage rises above 2.0x, which could stem from a material deterioration in earnings or surplus cash. Athene's largely annuity-based insurance/retirement services business weakens materially, although this is

...We expect Apollo Global Management, Inc.'s business strategy and financial policy to remain largely unchanged following the close of its pending stock-for-stock merger with Athene. The announced merger of Apollo and Athene would create a group with earnings split roughly equally between asset management and insurance/retirement services. Given the 'A+' financial strength rating on Athene and 'A-' issuer credit rating on Apollo, we think the merger of the two organizations will result in a combined group with an 'a' group credit profile. We expect the merger to close in first-quarter 2022. Apollo is in the process of simplifying its corporate structure and enacting other announced governance changes, which we view favorably. Apollo's governance initiatives include improving shareholder representation (one share-one vote), implementing leadership changes, expanding its board, and considering potential future governance arrangements to broaden the full board's oversight powers. The company...

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