Fitch affirms Man Group

Fitch Ratings said it affirmed Man Group's issuer default and senior unsecured debt ratings at A- and its subordinated debt at BBB+. This follows news that Man intends to separate its brokerage business, Man Financial, later this year by way of an initial public offering on the New York Stock Exchange.

The affirmation is based on discussions with Man, which indicated only a moderate change to many of Man's leverage and coverage ratios following the separation, the agency said. Fitch said it also believes that the remainder of Man's £400 million convertible bond is likely either to be called by Man or converted by noteholders later this year.

Fitch said it also understands that Man does not intend to reduce the size of its bank facilities (a core part of its available liquidity), even though Man Financial is to be separated. Man will continue to be regulated by the U.K. Financial Services Authority and will continue to be required to comply with regulatory capital requirements. Fitch said it believes this to be a key credit strength that differentiates Man from many other alternative asset managers.

Should Man's profile post-separation deviate materially from what has been communicated, Fitch said Man's ratings could change.

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