Apollo Global Management LLC's Proposed Perpetual Preferred Units Rated 'BBB+'

NEW YORK (S&P Global Ratings) March 12, 2018--S&P Global Ratings today said it assigned its 'BBB+' issue rating on Apollo Global Management LLC's (AGM) proposed perpetual preferred units. The size of the issuance will be determined by market conditions, but for our analysis, we are assuming the preferred units to be no more than $300 million. The issuer credit rating on AGM is 'A' with a stable outlook. The company intends to use the proceeds of the preferred issuance for general corporate purposes, including funding underlying general partner commitments and acquisitions. We expect a portion of the proceeds will remain as cash on the balance sheet in the near term. We view the company's perpetual preferred units as hybrid capital

...NEW YORK (S&P Global Ratings) March 12, 2018--S&P Global Ratings today said it assigned its '###+' issue rating on Apollo Global Management LLC's (AGM) proposed perpetual preferred units. The size of the issuance will be determined by market conditions, but for our analysis, we are assuming the preferred units to be no more than $300 million. The issuer credit rating on AGM is 'A' with a stable outlook. The company intends to use the proceeds of the preferred issuance for general corporate purposes, including funding underlying general partner commitments and acquisitions. We expect a portion of the proceeds will remain as cash on the balance sheet in the near term. We view the company's perpetual preferred units as hybrid capital with intermediate equity content and rate them two notches below our 'A' issuer credit rating on Apollo, reflecting subordination and optional deferability. In our calculation of Apollo's key ratios, we currently treat half the issued amount as debt and half as...

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