Fitch rates Brookfield unit A-

Fitch Ratings said it assigned a long-term issuer default rating of A- to Brookfield Finance II Inc., a wholly owned debt-issuing subsidiary of Brookfield Corp. The agency also assigned an expected A- unsecured debt rating to the new issuer’s planned debt offerings.

“The long-term IDR assigned to Brookfield Finance is equalized with that of Brookfield, as all debt issued by the entity benefits from a corporate guarantee from the parent,” Fitch said in a press release.

The proceeds are expected to be used for general corporate purposes, which could include repaying debt.

The outlook is stable, which reflects expectations that management will continue to deliver stable management fees and distributions, maintain healthy operating margins, keep fee-bearing assets under management through the raising of new and expansion of funds, return leverage metrics to current levels shortly after the spinoff, and retain a solid liquidity profile in order to fund operations and capitalize on investment opportunities, the agency said.

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