BlackRock’s Preqin deal sparks concern


Moody's said it lowered its outlook to negative from stable, “due to the size and scope of two acquisitions it announced in a short span of time this year”. — Bloomberg

LONDON: BlackRock Inc’s recent spate of deals, including this week’s acquisition of Preqin for US$3.2bil, is prompting concerns at Moody’s Corp about the money manager’s debt burden.

The ratings company lowered its outlook to negative from stable, “due to the size and scope of two acquisitions it announced in a short span of time this year”, Moody’s said in a statement on Tuesday. Moody’s maintained its Aa3 long-term issuer rating on BlackRock’s senior unsecured debt, which is investment grade and considered to be low risk.

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