Bulletin: The Carlyle Group L.P. And Subsidiary Ratings Are Unaffected By A Larger Than Expected Preferred Issuance

NEW YORK (S&P Global Ratings) Sept. 7, 2017--S&P Global Ratings today said that its ratings on The Carlyle Group L.P. and its subsidiaries (BBB+/Stable/--) are unaffected by the company's announced pricing on Sept. 6, 2017 of a $400 million 5.875% preferred issuance, which is scheduled to close on Sept. 13, 2017. We had lowered our ratings on Carlyle to 'BBB+' from 'A-' on Sept. 6, 2017, because of increased leverage, incorporating our assumption that Carlyle would issue no more than $300 million of preferred units. With the larger than expected preferred issuance--at $400 million--we continue to expect the leverage to be at approximately 2.2x, in the lower half of 2.0x-3.0x--similar to our previous expectation. In our view, this does not

...NEW YORK (S&P Global Ratings) Sept. 7, 2017--S&P Global Ratings today said that its ratings on The Carlyle Group L.P. and its subsidiaries (###+/Stable/--) are unaffected by the company's announced pricing on Sept. 6, 2017 of a $400 million 5.875% preferred issuance, which is scheduled to close on Sept. 13, 2017. We had lowered our ratings on Carlyle to '###+' from 'A-' on Sept. 6, 2017, because of increased leverage, incorporating our assumption that Carlyle would issue no more than $300 million of preferred units. With the larger than expected preferred issuance--at $400 million--we continue to expect the leverage to be at approximately 2.2x, in the lower half of 2.0x-3.0x--similar to our previous expectation. In our view, this does not affect our assessment of the company's financial risk profile, issuer credit rating, or any issue-level ratings. We view the company's perpetual preferred units as hybrid capital with intermediate equity content and rate them at '###-', two notches below...

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