Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) of Ares Finance Co. II LLC at 'BBB+'. The Rating Outlook is Stable.

KEY RATING DRIVERS -- IDR

The IDR of Ares Finance Co. II LLC is equalized with the 'BBB+' IDRs assigned to Ares Management LLC's operating group subsidiaries (collectively Ares) and reflect the fact that any notes issued from this entity would rank equally with all outstanding unsecured debt and benefit from the same joint and several guarantees from the Ares entities, which collect all fee, incentive, and investment income of the firm.

The ratings for Ares reflects the firm's solid competitive position as a global alternative investment manager, its experienced management team, solid investment track record, strong and predictable fee-related earnings (FRE) given its meaningful fee-earning assets under management (FAUM), relatively stable distributable earnings compared to peers, which is due to the significant FRE component, and the subordination of general partner interests to outstanding indebtedness.

Ares' Stable Outlook reflects Fitch's expectations that management will continue to generate stable management and advisory fees, grow/retain FAUM through the raising of new and expansion of existing funds, sustain operating margins, operate with relatively low leverage, and retain an adequate liquidity profile in order to meet debt service obligations and co-investment commitments to its funds.

RATING SENSITIVITIES -- IDR

The Long-Term IDR of Ares Finance Co. II LLC is linked to the ratings of Ares Management LLC. As such, Ares Finance Co. II LLC's ratings would move in tandem with any changes in Ares Management LLC's ratings.

Fitch has affirmed the following rating:

Ares Finance Co. II LLC -- Long-Term IDR at 'BBB+'.

The Rating Outlook is Stable.