...Our stable outlook on Macquarie Group Ltd. (MGL), the nonoperating holding company of the Macquarie group, reflects our expectation that the group will maintain its creditworthiness over the next two years. This is on the back of its: (1) well-diversified businesses across asset classes and geographies; (2) stable and repeatable income from asset-management and banking activities; (3) balance-sheet strength that provides a substantial buffer against market volatility and flexibility should opportunities arise; and (4) strong risk-management capabilities, notwithstanding some recent lapses, to manage the group's more complex credit, market, and operational risk exposure than traditional banking groups. Although Macquarie Bank Ltd. (MBL; A+/Stable/A-1) contributes to the group's credit strength at the current rating level, its ability to support the nonbanking entities of the group could be constrained due to regulatory separation, in our view....
