We have reviewed the proposed transaction structure outlined in the binding agreement to merge Santander Asset Management Investment Holdings Ltd. (SAM) with Pioneer Investments, the asset management subsidiary of UniCredit SpA. We expect the transaction to complete in late 2016 as it is subject to regulatory approvals and financing arrangements. Our current base-case expectation is that any additional debt used to finance the transaction will not result in a material increase in leverage at the consolidated group level. We are therefore affirming the 'BB' long-term counterparty credit rating on SAM and removing it from CreditWatch with negative implications. The negative outlook reflects the uncertainty with respect to integration risks associated with the complex merger and steady-state, post-transaction leverage. On Feb.
