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Fitch Expects to Rate Invesco's Senior Unsecured Note 'A-'

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NEW YORK--(BUSINESS WIRE)--

Fitch Ratings expects to assign an 'A-' rating to Invesco Finance PLC's (issuer) proposed senior note issuance due 2022. The issuer is a wholly owned subsidiary of Invesco Ltd. (IVZ or parent), which carries an 'A-' long-term Issuer Default Rating (IDR) from Fitch. The proposed notes will be fully and unconditionally guaranteed on a senior unsecured basis by the parent.

The proposed transaction will extend the company's debt maturity structure, which is viewed positively by Fitch. Furthermore, IVZ's leverage profile will not be materially impacted by the new issuance, as most of the proceeds will be used to pay down existing indebtedness.

Fitch notes that once IVZ repays its existing senior notes, the proposed notes will no longer benefit from a guarantee of certain subsidiary guarantors. The ratings of the issuer and the proposed issuance are based on the credit profile of the parent, which will guaranty the debt until maturity.

RATING DRIVERS AND SENSITIVITIES

Fitch expects IVZ to be able to maintain performance appropriate to the current rating level, even under a moderate period of equity market stress. While positive rating momentum is not likely in the near term, continued progress in expanding the franchise as well as a further reduction in leverage and improvement in debt service coverage could benefit the ratings and/or Outlook. A severe and prolonged decline in equity markets could pressure the rating and/or Outlook, as well as unexpected operational losses or significant net redemptions.

Fitch has assigned the following rating:

Invesco Finance PLC

--Long-term IDR of 'A-', Rating Outlook Stable.

Fitch expects to assign the following rating:

Invesco Finance PLC

--Proposed senior unsecured notes due 2022 'A-'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012);

--'Investment Manager and Alternative Funds Criteria' (Dec. 23, 2011).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

Investment Manager and Alternative Funds Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=661367

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Fitch Ratings
Primary Analyst
Ilya Ivashkov, CFA, +1 212-908-0769
Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Mohak Rao, CFA, +1 212-908-0559
Director
or
Committee Chairperson
Nathan Flanders, +1 212-908-0827
Managing Director
or
Media Relations:
Brian Bertsch, +1 212-908-0549
Email: brian.bertsch@fitchratings.com

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