Fidelity's debt outlook lowered
The debt outlook for Boston mutual-funds giant Fidelity Investments was lowered from stable to negative because of concerns over market share loss and investments in higher risk noncore businesses, Standard & Poor's Ratings Services said today.
Standard & Poor's affirmed AA/A-1+ counterparty credit rating on FMR Corp., the investment arm of Fidelity Investments.
"We're pleased they've kept our very high debt rating," said Fidelity spokeswoman Anne Crowley. "On the debt outlook, we think they've overemphasized the risks associated with our investments in noncore businesses."
Last year, net inflows were "slow" for Fidelity due to "mediocre performance in several flagship equity funds," said Standard & Poor's, which noted that Fidelity installed a new management team in mid 2005.
"While subsequent results are strong," Standard & Poor's said, "we want to see sustained results over a longer period of time."
(By Chris Reidy, Globe Staff)
