Fitch Assigns Intermediate Capital Group's EMTN Issue 'BBB-' Final Rating

LONDON--(BUSINESS WIRE)-- 01 April 2015

Fitch Ratings has assigned Intermediate Capital Group's (ICG; BBB-/Stable) GBP160m 5.00% bullet bond issue under its GBP500m euro medium-term note (EMTN) programme a final rating of 'BBB-'.

The rating is in line with the expected rating assigned to the issue on 5 March 2015.

KEY RATING DRIVERS

Notes issued under the EMTN programme are rated in line with ICG's Long-term IDR of 'BBB-', reflecting their status as senior unsecured obligations. The notes are guaranteed by Intermediate Capital Investments Limited, Intermediate Capital Managers Limited and Intermediate Investments LLP, which together account for a material portion of group assets and earnings. In common with ICG's Long-term IDR, the issue rating reflects Fitch's view of ICG holding a strong franchise in leveraged finance and associated asset management activities.

The rating also takes into account the inherent risk profile of the group's asset portfolio and its links with wider market performance, notwithstanding recent increases in the scale of ICG's fund management activity, which Fitch views as comparatively stable, relative to its level of direct investment.

RATING SENSITIVITIES

As the rating is aligned with ICG's IDR, it is primarily sensitive to a change in this rating.

The ratings may be downgraded if ICG's leverage, defined as debt/tangible equity, exceeds 1.0x (September 2014: 0.4x) on a sustained basis, if it reports a material fall in fund management fees or if it suffers a significant weakening of performance in its asset portfolio.

Upside rating potential is currently limited, but the rating could benefit over time from further rebalancing of the earnings profile towards more stable fund management company fee income, with evidence of a related reduction in balance sheet risk.

Additional information is available on www.fitchratings.com.

Applicable criteria, "Global Bank Rating Criteria" and "Global Non-Bank Financial Institutions Rating Criteria" both dated 20 March 2014 are available on www.fitchratings.com.

Applicable Criteria and Related Research:

Global Bank Rating Criteria

Global Non-Bank Financial Institutions Rating Criteria

Additional Disclosure

Solicitation Status

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Primary Analyst
David Pierce
Director
+44 20 3530 1014
Fitch Ratings Limited
30 North Colonnade
London E14 5GN
or
Secondary Analyst
Erwin van Lumich
Managing Director
+34 93 323 8403
or
Committee Chairperson
Christian Kuendig
Senior Director
+44 20 3530 1399
or
Media Relations
Elaine Bailey, +44 203 530 1153
[email protected]

Source: Fitch Ratings

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