S&P: Emerald Acquisition view to negative

S&P said it revised its outlook on Emerald Acquisition Ltd. to negative from stable and affirmed the BB issuer credit rating.

"At the same time, we also affirmed the BB issue-level ratings on Russell Investments US Institutional Holdco, Inc. and Russell Investments US Retail Holdco, Inc. (which are guaranteed by Emerald)," S&P credit analyst Brian Estiz said in a news release.

The recovery rating remains at 3, indicating an expectation for a meaningful recovery (50% to 70%; lower half of the range) for debtholders in the event of a payment default.

The outlook revision on Emerald follows the company's announcement of a $200 million add-on to the existing $647 million term loan B in order to fund a dividend to shareholders, the agency said.

The transaction comes less than a year after TA Associates and Reverence Capital Partners completed the acquisition of the asset management business previously integrated under Frank Russell Co. from the London Stock Exchange in June 2016.

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