Ares Management L.P. Outlook Revised To Positive Following Cancellation Of Planned Merger; 'BBB+' Ratings Affirmed

Los Angeles-based Ares Management announced the cancellation of its planned merger with Kayne Capital Advisors, an energy-focused asset manager. As a result, we expect Ares to reduce leverage materially by redeeming the $325 million of senior unsecured notes that it issued in August 2015 to fund a portion of the proposed transaction. We are revising our outlook on Ares to positive from stable and affirming our 'BBB+' issuer credit and senior unsecured debt ratings. The positive outlook reflects our expectation that the company will maintain a stronger financial profile, possibly with debt to adjusted EBITDA of less than 1.5x, in the next 12-18 months than we had anticipated under the previously planned merger. NEW YORK (Standard&Poor's) Nov. 5,

...+ Los Angeles-based Ares Management announced the cancellation of its planned merger with Kayne Capital Advisors, an energy-focused asset manager. + As a result, we expect Ares to reduce leverage materially by redeeming the $325 million of senior unsecured notes that it issued in August 2015 to fund a portion of the proposed transaction. + We are revising our outlook on Ares to positive from stable and affirming our '###+' issuer credit and senior unsecured debt ratings. + The positive outlook reflects our expectation that the company will maintain a stronger financial profile, possibly with debt to adjusted EBITDA of less than 1.5x, in the next 12-18 months than we had anticipated under the previously planned merger. NEW YORK (Standard & Poor's) Nov. 5, 2015--Standard & Poor's Ratings Services today said it revised its outlook on Los Angeles-based Ares Management L.P. to positive from stable. At the same time, we affirmed our '###+' issuer credit and senior unsecured debt ratings on the...

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