KBRA assigns and publishes issuer and senior unsecured debt ratings of A- to Corient Holdings Inc. ("Corient" or "the firm"). On February 20, 2024, these ratings were assigned on an unpublished basis. The rating Outlook is Stable.

The ratings are supported by Corient’s resilient business model, underpinned by an integrated professional services partnership that offers employees equity stakes in the RIA business, driving alignment of interests and incentivizing employees, while creating value for the firm’s client base. Following its unique partnership model, Corient has grown rapidly since its inception in 2020 via a combination of organic and acquisitive growth that has encompassed targets that meet the firm’s stringent criteria. Corient has continued to demonstrate solid growth in more recent periods despite a more challenging operating landscape, while the various acquisitions completed also tempered the impact of broader market declines. We acknowledge Corient’s limited standalone operating history, though the firm’s parent, CI Financial Corp. (TSX: CIX or "CI") has a long track record and strong brand recognition. Corient’s granular client base of high net worth and ultra-high net worth individuals has access to a broad range of wealth management, investment, and family office services that benefit from the firm’s expertise and extensive network of industry relationships, including via CI. Regarding investments, rigorous risk management practices govern customized investment portfolio construction, while active monitoring and rebalancing functions exist to match clients’ risk tolerance. EBITDA margins are high and projected to trend in the low to mid-40% range over the forecast period, which compares well versus many peers. Future debt obligations are expected to be issued in accordance with the firm’s current debt financing strategy and leverage targets, including projected debt/EBITDA of <2x while interest coverage (as measured by EBITDA/interest) is expected to remain adequate through the medium term.

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Methodologies

• Financial Institutions: Asset Manager Global Rating Methodology
  
  
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003298

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