S&P Global Ratings on Monday lowered Och-Ziff Capital Management LLC’s
credit rating to BB from BB+, pushing it deeper into junk territory. “We now believe that the company’s fixed costs are a bigger proportion of its expense base than we initially projected, which results in lower EBITDA at a time when the company’s revenues are under stress due to lower assets under management and a lower management fee rate,” said Sebnem Caglayan, a credit analyst at S&P Global Ratings. BB grade is widely viewed as “somewhat speculative” in the debt market. The outlook on the rating is negative. Och-Ziff shares fell 3.8% to close at $2.30 a share ahead of the news.