Single, stable business line of independent financial advice Minimal balance sheet risk Short track record since reorganization, as well as some litigation risk and reputational damage from recent bankruptcy Negative tangible equity Limited profitability The stable outlook reflects S&P Global Ratings' belief that over the next 12 months Aretec Group Inc. will continue to grow its EBITDA and net revenues while maintaining adequate covenant cushions. Further, we expect the company will maintain its improved advisor retention rates and continue to limit its exposure to market and credit risks. Over the next 12 months, we could raise the rating on Aretec if the company is able to realize some of the projected synergies and cost-saving initiatives to improve its earnings, debt
