articles Ratings /ratings/en/research/articles/210226-bulletin-amp-capital-s-potential-jv-could-weigh-on-group-creditworthiness-11855732 content esgSubNav
Log in to other products

 /


Looking for more?

In This List
NEWS

Bulletin: AMP Capital's Potential JV Could Weigh On Group Creditworthiness

NEWS

Downside Risks Ease For New Zealand Financial Institutions

COMMENTS

Comparative Statistics: U.S. Banks (April 2021)

COMMENTS

The Future Of Banking: Can Digital-Only Banks Crack Malaysia?

COMMENTS

Capital Markets Revenue Should Remain Robust For Global Banks In 2021 Despite Risks


Bulletin: AMP Capital's Potential JV Could Weigh On Group Creditworthiness

SYDNEY (S&P Global Ratings) Feb. 26, 2021--AMP Capital's potential joint venture (JV) with ARES Management Corp. (ARES) could weigh on the ratings on AMP group entities, S&P Global Ratings said today. This follows AMP's announcement today that it has entered into a nonbinding heads of agreement with ARES to pursue the formation of a JV. The Australia-based AMP group includes AMP Ltd. (BBB-/Stable/--), AMP Group Holdings Ltd. (BBB-/Stable/A-3), and AMP Bank Ltd. (BBB/Stable/A-2).

AMP Capital houses the group's investment business. Under the group's current operating structure, AMP Capital contributes positively to the group's overall credit strength, and forms the bulk of group earnings. In our view, a weakening of AMP Capital's credit profile could therefore weigh on the overall group ratings. Factors that could contribute to a weaker group credit profile include lower overall earnings contribution, and a weaker overall business and financial risk profile from AMP Capital. The application of the proceeds from the proposed JV, under which ARES would have majority ownership and management control, is currently unknown.

We will continue to monitor the developments around this potential transaction noting that at this stage there is no certainty over whether it will proceed, or the terms on which it would proceed.

This report does not constitute a rating action.

AUSTRALIA

S&P Global Ratings Australia Pty Ltd holds Australian financial services license number 337565 under the Corporations Act 2001. S&P Global Ratings' credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act).

Primary Credit Analyst:Nico N DeLange, Sydney + 61 2 9255 9887;
nico.delange@spglobal.com
Secondary Contacts:Mark P Symes, Melbourne (61) 3-9631-2051;
mark.symes@spglobal.com
Sharad Jain, Melbourne + 61 3 9631 2077;
sharad.jain@spglobal.com

No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.

Any Passwords/user IDs issued by S&P to users are single user-dedicated and may ONLY be used by the individual to whom they have been assigned. No sharing of passwords/user IDs and no simultaneous access via the same password/user ID is permitted. To reprint, translate, or use the data or information other than as provided herein, contact S&P Global Ratings, Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to: research_request@spglobal.com.


Register with S&P Global Ratings

Register now to access exclusive content, events, tools, and more.

Go Back