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Fitch Rates Man Group plc's Guaranteed Subordinated Notes 'BBB-(EXP)'
September 1, 2014 / 12:21 PM / 3 years ago

Fitch Rates Man Group plc's Guaranteed Subordinated Notes 'BBB-(EXP)'

(The following statement was released by the rating agency) LONDON, September 01 (Fitch) Fitch Ratings has assigned Man Group plc's potential issue of US dollar-denominated fixed rate reset callable dated subordinated notes guaranteed by Man Strategic Holdings Limited (BBB/Stable) an expected rating of 'BBB-(EXP)'. The final rating assignment is contingent on the receipt of final documentation conforming to information already received and the exchange offer being completed. KEY RATING DRIVERS The notes will be irrevocably guaranteed on a subordinated basis by Man Strategic Holdings Limited. The notes are subordinated and will qualify as Tier 2 regulatory capital. They are rated one notch below Man Strategic Holdings' 'BBB' Issuer Default Rating (IDR), in line with Fitch's criteria for Treatment and Notching of Hybrids in Non-Financial Corporate and REIT Credit Analysis and Assessing and Rating Bank Subordinated and Hybrid Securities' criteria. The notching reflects our base case one notch for loss severity due to the subordinated nature of the notes. Fitch has not applied notching for the relative non-performance as the notes do not contain any coupon deferral features. Fitch expects the non-performance risk of the notes to be closely related to the factors that drive Man Strategic Holdings' IDR. The notes are callable but do not contain any step-up language. RATING SENSITIVITIES The securities are notched down from Man Strategic Holdings' IDR in line with the guarantee it has provided for the notes. The rating of the notes is primarily sensitive to any change in Man Strategic Holdings' IDR. Fitch does not rate Man Group Plc. Although double leverage at the holding company, Man Group plc, could rise, we expect it will only increase modestly and remain within an acceptable tolerance levels. The securities' ratings are also sensitive to changes in their notching, which could arise if Fitch changed its assessment of the probable loss severity of the notes or of the probability of their non-performance relative to the risk captured in Man Strategic Holdings' IDR. Contact: Primary Analyst Denzil De Bie Director +44 20 3530 1592 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analyst Alan Milne Associate Director +44 20 3530 1491 Committee Chair Gordon Scott Managing Director +44 20 3530 1075 Media Relations: Elaine Bailey, London, Tel: +44 203 530 1153, Email: elaine.bailey@fitchratings.com. Additional information is available at www.fitchratings.com. Applicable criteria, 'Global Financial Institutions Rating Criteria', dated 31 January 2014, 'Rating FI Subsidiaries and Holding Companies', dated 10 August 2012, 'Treatment and Notching of Hybrids in Non-Financial Corporate and REIT Credit Analysis', dated 23 December 2013, 'Assessing and Rating Bank Subordinated and Hybrid Securities' dated 31 January 2014 are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Rating FI Subsidiaries and Holding Companies here Treatment and Notching of Hybrids in Non-Financial Corporate and REIT Credit Analysis here Assessing and Rating Bank Subordinated and Hybrid Securities Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. 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.

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