(January 29 – 10:00 ET) -Standard & Poor’s has announced its single-‘A’ harmonized corporate credit and senior unsecured debt ratings on Investors Group Inc. The outlook is stable.

Standard & Poor’s single-‘A’-minus counterparty credit and senior unsecured debt ratings on Mackenzie Financial Corp. remain on CreditWatch with developing implications, where they were placed Nov. 10, 2000.

The ratings actions follow the announcement that Investors Group will acquire Mackenzie Financial for a total consideration of $4.149 billion, or $30 per share

S&P initially placed the ratings on Mackenzie on CreditWatch after a $3.9 billion hostile takeover bid by C.I. Funds Management Inc. in November 2000. Following successful completion of the takeover bid, which is subject to shareholder approval, ratings on Mackenzie Financial will be equalized with those of Investors Group.

S&P says the ratings on Investors Group reflect the merged company’s operating fundamentals and dominant industry position as the largest mutual fund company in Canada, with collective brand strengths, distinct investment management operations, and enviable distribution channels.

Together, Investors Group and Mackenzie Financial will be one of the largest retail wealth management companies in Canada, with more than $85 billion in assets under administration, over 2 million clients, and access to 43,500 financial consultants and advisors across Canada. The ratings also reflect good post-acquisition credit fundamentals and coverage ratios, as well as the overall positive industry fundamentals, albeit with slower growth.

The stable ratings outlook on Investors Group reflects S&P’s expectation that the company will maintain its leading market position and that the overall financial profile will generally improve in the intermediate term.
-IE Staff