Mubasher: Moody's Investor Service affirmed the Ba2 of corporate family rating of Investcorp Bank, a Monday's report revealed.
In addition, the Ba2 ratings of the backed senior unsecured debt of Investcorp S.A. and Investcorp Capital Limited were affirmed.
The negative outlook on the ratings was left unchanged, according to the report.
This rating action comes after Investcorp announced acquiring the debt management business of 3i Group PLC, a global alternative credit manager on 25October 2016, said the rating firm, adding that the transaction is expected to close in the first half of 2017.
The acquisition will be financed through the cash available on the balance sheet, which will have a moderately negative impact on the company's solid liquidity profile.
"Moody's views the acquisition as potentially having some positive credit implications on Investcorp's business profile, as it will broaden its product and geographical diversification. Over time, distribution synergies are expected as the acquisition will open access to new and incremental sources of capital to both 3i debt management and Investcorp's clients. The acquisition will more than double Investcorp's assets under management to approximately $23 billion, but given the relatively low fee nature of the business, the contribution to Investcorp's revenue and profit margin is expected to be modest", said the rating agency.
