Moody’s affirms BlackRock ratings reflecting post-M&A confidence
Moody’s Ratings has affirmed BlackRock’s senior unsecured Aa3 ratings and revised its outlook upwards to stable from negative, following this week’s completion of its acquisition of HPS Investment Partners.
The credit rating provider said the changes reflected confidence in BlackRock following its recent spell of corporate activity.
Read more: BlackRock looks to raise $400bn in private markets by 2030
It noted the investment manager’s progress in integrating GIP (Global Infrastructure Partners) and Preqin – two deals that took place in October 2024 and March 2025 respectively.
Moody’s further highlighted the “strategic benefits and accretive financial effects” expected to follow the HPS deal.
“With HPS, BlackRock will manage approximately $190bn (£140bn) in private debt, making it one of the top five private credit franchises globally,” it said. “This scale enhances BlackRock’s competitive positioning in the private credit markets, with its insurance clients, in private wealth channels.”
Read more: Moody’s: Insurance companies increasing exposure to private credit
Moody’s affirmed the backed senior unsecured Aa3 ratings of BlackRock and the senior unsecured Aa3 ratings of subsidiary BlackRock Finance.
“In considering the outcomes of this M&A activity, in combination with the strong organic growth of the company’s standalone business over the past year and favourable market performance, we have grown increasingly confident that the company’s leverage ratio will decline below our downgrade trigger of 1.5 times upon close of the HPS transaction,” the ratings agency said.
It pointed out that BlackRock’s rating could be upgraded further if it could demonstrate continued increases to base and bonus fees, increase its operating margin and accelerate its technology-based revenue growth.
On the flipside, the rating could be downgraded if BlackRock’s leverage multiple moves beyond the downgrade trigger of 1.5 times for “an extended period of time”, or if by falling short of its acquisition goals, its bottom line suffers.
Read more: Great Gray chooses BlackRock for private markets allocation in retirement fund
