Sunday, December 14, 2014

Carlyle, Warburg Could Have Captive Rating Agency

Reuters reported:

A private equity consortium of Carlyle Group LP and Warburg Pincus LLC is in advanced talks to acquire privately held credit rating agency DBRS Ltd for more than $500 million, according to people familiar with the matter.

After final bids were submitted this week, Carlyle and Warburg Pincus have so far prevailed in the auction for DBRS, which also attracted Canadian private equity firm Birch Hill Equity Partners Management Inc, the people said on Friday.

No exclusivity has been awarded to any bidder and the outcome could still change, the people cautioned. Carlyle and Warburg Pincus are in the lead partly because they have a global footprint that can help DBRS expand further internationally, one of the people said.

The Carlyle Group has been known to bleed affiliates for dividends by floating debt.  How might a captive rating agency help Carlyle's cause?  

Carlyle junk:  never too hot to loan.  Might this be DBRS new mantra?