Ares Management L.P. Outlook Revised To Stable From Positive On Expectations Of Higher Leverage; 'BBB+' Ratings Affirmed

Ares Management L.P. (Ares) is planning to use proceeds from its perpetual preferred equity issuance to fund its $275 million in financial support for Ares Capital Corp.'s acquisition of American Capital Ltd. As a result, we now expect Ares to operate with leverage between 1.5x and 2.0x. We are revising our outlook on Ares to stable from positive and affirming our 'BBB+' issuer credit and senior unsecured debt ratings, as well as our 'BBB-' preferred stock rating. The stable outlook reflects our expectation that the company will continue to maintain good investment performance and solid growth in fee-paying assets under management. It also reflects our expectation that the company will maintain leverage between 1.5x and 2.0x. NEW YORK (S&P Global

...+ Ares Management L.P. (Ares) is planning to use proceeds from its perpetual preferred equity issuance to fund its $275 million in financial support for Ares Capital Corp.'s acquisition of American Capital Ltd. + As a result, we now expect Ares to operate with leverage between 1.5x and 2.0x. + We are revising our outlook on Ares to stable from positive and affirming our '###+' issuer credit and senior unsecured debt ratings, as well as our '###-' preferred stock rating. + The stable outlook reflects our expectation that the company will continue to maintain good investment performance and solid growth in fee-paying assets under management. It also reflects our expectation that the company will maintain leverage between 1.5x and 2.0x. NEW YORK (S&P Global Ratings) Oct. 21, 2016--S&P Global Ratings today said it revised its outlook on Ares Management L.P. (Ares) to stable from positive. At the same time, we affirmed our '###+' issuer credit and senior unsecured debt ratings, as well as our...

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