TEXT-Fitch rates Affiliated Managers Group

Fri Oct 5, 2012 2:15pm EDT

Oct 5 - Fitch Ratings has assigned a 'BBB-' rating to Affiliated Managers
Group Inc.'s (AMG) $125 million senior unsecured retail notes. The notes
have a coupon of 5.25% and will mature on Oct. 15, 2022.

The notes will be callable, in whole or part, at any time on or after Oct. 15, 
2015 at the issuer's option. The notes will rank equally with AMG's other 
unsecured debt outstanding. Proceeds from the issuance will be used to repay 
borrowings under AMG's unsecured revolving credit facility. As of Sept. 28, 
2012, AMG had $195 million outstanding under its revolving credit facility.

Given that the proceeds from the new issuance will be used to repay outstanding 
borrowings under the revolving credit facility, Fitch does not envision there 
being a material impact on the company's leverage levels as a result of the 
issuance.

Leverage, measured as gross debt to trailing 12 months adjusted EBITDA, was 
2.35x at the second quarter of 2012.

RATING DRIVERS AND SENSITIVITIES 

AMG's ratings reflects its growing scale in the asset management space, solid 
investment performance by its affiliates, strong cash flow generation, and 
adequate leverage and interest coverage ratios. Ratings also factor in the 
company's inherent exposure to volatility in broader financial markets.

Improvement in current leverage and interest coverage metrics and consistent 
operating and investment performance could lead to positive rating action. 
Conversely, aggressive acquisitions funded by increased debt levels, material 
deterioration in leverage or interest coverage ratios, sustained investment 
underperformance at major affiliates, significant increase in equity puts by 
affiliates leading to liquidity issues, and/or unexpected operational losses or 
significant net outflows, could lead to negative rating action.

Fitch currently rates AMG as follows: 

Affiliated Managers Group Inc.
--Long-term Issuer Default Rating (IDR) 'BBB-';
--Senior bank credit facility 'BBB-';
--Senior convertible notes 'BBB-';
--Senior unsecured retail notes 'BBB-'.

AMG Capital Trust I
AMG Capital Trust II
--Trust preferred securities 'BB-'.

The Rating Outlook is Stable.
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