Moody's Cuts Man Debt To Near Junk

Aug 21 2012 | 12:24pm ET

Moody's Investors Service slashed Man Group's credit rating to just above junk after the hedge fund giant's assets under management dropped by a quarter over the past year.

The world's largest publicly-traded hedge fund's debt is now rated Baa3, the lowest investment grade, Moody's announced today. The ratings agency cited "continuing challenges in the company's core business" and warned "there will be little if any retained earnings given Man's dividend policy and ongoing earnings pressure."

Man disputed Moody's pessimism, saying it "remains financially robust and enjoys a strong position in the market."

"Man has made considerable progress in addressing its cost base and expanding its investment management capabilities," it said.

Man's assets dropped from US$71 billion to US$52.7 billion in the year-ended June. Its stock price has been battered and its flagship AHL strategy has performed poorly. The firm announced plans to impose nearly US$200 million in cost cuts this year.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of