Fitch Rates Fortress' Senior Unsecured Debt 'BBB'

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has assigned a 'BBB' rating to the $275 million senior unsecured credit facility of FIG LLC, a wholly owned subsidiary of Fortress Investment Group LLC (collectively with its related entities, Fortress), maturing in January 2021, jointly and severally guaranteed by certain Fortress subsidiaries. See the full list of rating actions at the end of this release.

KEY RATING DRIVERS

The unsecured debt rating has been equalized with the 'BBB' Issuer Default Rating (IDR) of Fortress (affirmed by Fitch on Nov. 5, 2015) reflecting average recovery prospects given the absence of secured debt in Fortress' funding profile post-refinancing. The new credit facility will be used initially to refinance Fortress' existing senior secured revolving credit facility, set to mature in February 2016, and may be drawn upon in the future for general corporate purposes.

RATING SENSITIVITIES

The unsecured debt rating is equalized with Fortress' IDR and, therefore, would be expected to move in tandem with any changes to Fortress' IDR.

Positive rating momentum would be limited to a change in Fortress' IDR, which could result from continued fee-earning assets under management (FAUM) growth, operating consistency, and further revenue diversity, while maintaining conservative leverage and liquidity positions.

Conversely, negative rating pressure on Fortress' IDR could result from a reduction in management fees resulting from significant redemption activity, material declines in asset values, and/or an inability to raise follow-on funds, a diminished liquidity profile, or materially higher leverage. Were Fortress to assume material secured debt, such that recovery prospects for the unsecured credit facility were materially affected, this could result in the unsecured debt rating being notched down from the IDR.

Fortress Investment Group, LLC, a Delaware incorporated limited liability company, is a global alternative investment manager specializing in private equity, credit funds, permanent capital vehicles and hedge funds. As of Sept. 30, 2015, AUM amounted to $74.3 billion. The company's stock is listed on the NYSE under the ticker 'FIG'.

Fitch has assigned the following ratings:

Fortress Investment Group LLC

Fortress Operating Entity I L.P.

Principal Holdings I L.P.

FIG LLC

--Unsecured debt at 'BBB'.

Additional information is available on www.fitchratings.com

Applicable CriteriaGlobal Non-Bank Financial Institutions Rating Criteria (pub. 28 Apr 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=865351Additional DisclosuresDodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=998136Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=998136Endorsement Policyhttps://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160120006520/en/

Fitch Ratings
Primary Analyst
Meghan Neenan, CFA
Senior Director
+1-212-908-9121
Fitch Ratings, Inc.
33 Whitehall St
New York, NY 10004
or
Secondary Analyst
Michael Dodge
Associate Director
+1-212-908-0379
or
Committee Chairperson
Joo-Yung Lee
Managing Director
+1-212-908-0560
or
Media Relations
Hannah James, + 1 646-582-4947
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• The Inner Circle acknowledges V. Ray Cordry, Jr., DO as a 2026 Preferred Psychiatrist
• NCLA to Supreme Court: Stop Governments from Making Americans Surrender Rights for Benefits
• Mechanics Bancorp Declares Third Quarter 2026 Cash Dividend