Nomura Holdings' (TYO:8604) $1.8 billion purchase of Macquarie Group's US and European asset management operations should help stabilize the Japanese company's long-term earnings, S&P Global Ratings said in a Tuesday release.

The acquisition will enable the financial holdings company to diversify its business given its volatile revenue, although it will also reduce its capital buffer, S&P said.

With a portion of the deal price notably allocated to goodwill and intangible assets, S&P sees Nomura's risk-adjusted capital ratio declining by about one percentage point from 11.8%.

Still, the purchase will allow the company to generate stable revenue from asset management and provide access to a significant US customer base, according to the rating agency.

S&P expects assets under management in Nomura's investment management division to rise by about 30% to about $770 billion post-acquisition.

However, the rating agency sees smaller profit contributions from the purchase in the first one to two years due to management fees and other costs.

Price (JPY): $796.10, Change: $+17, Percent Change: +2.23%