Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Standard & Poor's Ratings Services (S&P) – a division of McGraw Hill Financial, Inc. (MHFI - Analyst Report) – has upgraded its outlook on BlackRock, Inc. (BLK - Analyst Report). The rating agency has revised the company’s outlook to Positive from Stable, while affirming ‘A+/A-1’ issuer credit ratings and senior unsecured rating of ‘A+’.

S&P’s outlook upgrade is based on BlackRock’s efforts to improve leverage ratio and its robust financial performance over the past few quarters. Over the last one year, the company repaid approximately $1.35 billion of debt.

In Dec 2012, BlackRock repaid $500 million of maturing long-term debt from issuance of debt in May 2012. Further, in the first quarter, the company repaid $100 million of short-term borrowings. Moreover, in May this year, BlackRock paid back $750 million of maturing debt from cash available in hand. Thus, the company’s total borrowing is at present below $5.0 billion, compared with $6.3 billion in Jun 2012.

Additionally, S&P’s outlook affirms its belief in BlackRock’s ability to redeem roughly $1.0 billion of debt maturing in Dec 2014, without any extra debt issuance. Further, if the company’s earnings momentum and strong cash flow generation continue, the rating agency could raise BlackRock’s credit ratings as well.

S&P stated that BlackRock’s current ratings indicate the company’s leading position and unmatched range of asset management operations. As of Mar 31, 2013, assets under management (AUM) were $3.9 billion, up 7% year over year.

For BlackRock, the outlook upgrade is a catalyst. Further, the company’s enhanced capital deployment activities and acquisition plans will prove accretive to its overall performance. BlackRock’s initiatives to improve market share in the ETF business is also commendable.

Currently, BlackRock carries a Zacks Rank #3 (Hold). Better performing stocks include Noah Holdings Limited (NOAH - Snapshot Report) and Virtus Investment Partners, Inc. (VRTS - Snapshot Report), both of which have a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%