S&P Global Ratings revised its outlook on CI Financial Corp. to negative from stable and affirmed the company's issuer credit rating and senior unsecured debt ratings at A-.
The outlook revision reflects S&P's view that the company will operate with leverage closer to 1.5x in the next 18 to 24 months, as opposed to the agency's previous expectation of about 1.0x.
Withdrawal of C$150 million from the revolving credit facility increased CI Financial's debt in the first half of 2017, and the rating agency expects this trend to continue in the second half as a result of the company's announced acquisition of Sentry Investments Corp.
S&P said it could revise the rating outlook to stable if the company's leverage drops to levels closer to 1x or lower while investment performance is strong and organic flows are steady.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.