Research Update: Apollo Asset Management And Apollo Global Management Upgraded To 'A' On Lower Leverage And Solid Operating Performance

We expect Apollo Asset Management Inc. (AAM) to maintain S&P-adjusted debt to EBITDA below 1.5x for the next 12-24 months. Increasing allocations to private credit over the near term, continued strong fundraising supported by robust investment performance, and Athene's growth are supportive of AAM's business strength and continued deleveraging. We raised our issuer credit rating on AAM and Apollo Global Management Inc. (AGM) to 'A' from 'A-'. We also raised our issue ratings on the senior unsecured notes to 'A' from 'A-' and on subordinated debt and preferred equity to 'BBB+' from 'BBB'. The stable outlook reflects our expectation that AAM will maintain leverage below 1.5x for the next 24 months, while continuing to grow its assets under management (AUM)

...- We expect Apollo Asset Management Inc. (AAM) to maintain S&P-adjusted debt to EBITDA below 1.5x for the next 12-24 months. - Increasing allocations to private credit over the near term, continued strong fundraising supported by robust investment performance, and Athene's growth are supportive of AAM's business strength and continued deleveraging. - We raised our issuer credit rating on AAM and Apollo Global Management Inc. (AGM) to 'A' from 'A-'. We also raised our issue ratings on the senior unsecured notes to 'A' from 'A-' and on subordinated debt and preferred equity to '###+' from '###'. - The stable outlook reflects our expectation that AAM will maintain leverage below 1.5x for the next 24 months, while continuing to grow its assets under management (AUM) and maintain strong investment performance and exceptional liquidity....

Research Update