(April 19 – 11:20 ET) – Standard & Poor’s has affirmed its single-‘A’ corporate credit and senior unsecured debt ratings on Investors Group Inc. The ratings agency says the outlook is stable.


Standard & Poor’s says the single-‘A’-minus counterparty credit and senior unsecured debt ratings on Mackenzie Financial Corp. were withdrawn and removed from CreditWatch, where they were placed Nov. 10, 2000. Mackenzie Financial has no debt outstanding.


The ratings actions follow the announcement by Investors Group that all conditions to the completion of the offer and the take-up of Mackenzie Financial’s common shares have been satisfied.


Back in January, Investors Group announced it would acquire Mackenzie Financial for a total consideration of $4.149 billion, or $30 per share. Mackenzie Financial shareholders were offered $30 per Mackenzie share payable, at their option, subject to proration, in cash or in Investors Group shares, based on an exchange ratio of 1.2 Investors Group shares per Mackenzie share. About 98% of the Mackenzie Financial shares have been tendered to date. Investors Group has said it will take up and pay for common shares of Mackenzie Financial deposited pursuant to its offer dated Feb. 15, and that it will extend its offer to April 30.


Standard & Poor’s 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. Combined with an offering of enhanced products and services, Standard & Poor’s says these factors ensure access to shelf space across all distribution channels and, therefore, opportunities for continued growth in assets under management.


Together, Investors Group and Mackenzie Financial will be one of the largest retail wealth management companies in Canada, with more than C$85 billion in assets under administration, in excess of 2 million clients, and access to 43,500 financial consultants and advisors across Canada.


Standard & Poor’s says the ratings also reflect good post-acquisition credit fundamentals and coverage ratios, as well as the overall positive industry fundamentals.