Contrary to our previous expectations, the FEI consolidated group has been unable to raise its risk-adjusted capital ratio above 15%. We believe that the group also faces challenges in lifting its capital levels. We are placing our 'B' long-term rating on FEI on CreditWatch with negative implications. We see a one-in-two chance that we will lower our long-term rating on the finance company to 'B-' in the next three months. MELBOURNE (S&P Global Ratings) Feb. 5, 2019--On Feb. 5, 2019, S&P Global Ratings placed its 'B' long-term issuer credit rating on FE Investments Ltd. (FEI) on CreditWatch with negative implications. The CreditWatch placement reflects a one-in-two chance that we will lower our long-term rating on FEI to 'B-' in the next three months. Contrary to our previous expectations, the FEI group has been unable to raise its risk-adjusted capital (RAC) ratio (based on S&P Global Ratings' bank capital methodology)
