OREANDA-NEWS. More-->S&P Global Ratings today said it assigned its 'BBB-' issue rating on OM Asset Management plc's (OMAM) proposed $100 million senior notes. The issuer credit rating on OMAM is 'BBB-' with a stable outlook.

The company intends to use the proceeds from the offering for general corporate purposes, including the funding of certain seed and co-investment capital investments. The notes will be unsecured and unsubordinated obligations and will rank equally with all future unsecured senior indebtedness, including the company's 4.8% senior notes due in 2026.

As of March 31, 2016, OMAM's adjusted debt totaled $140 million, including $85 million outstanding under the revolving credit facility and our $55 million adjustment for operating lease obligations. Earlier this month, the company issued $275 million of senior notes due in 2026. Pro forma for both debt issuances, we estimate the company's adjusted debt to EBITDA at about 2.4x as of March 31, 2016. We expect OMAM to operate with adjusted debt to EBITDA below 3x.

Our rating on OMAM reflects the company's broadly diversified product mix and customer base, solid investment performance, and good distribution capabilities. OMAM's ownership by Old Mutual PLC, which we view as a financial sponsor, weighs on our assessment of the company's financial risk profile.