Moody's eyes Black Knight for upgrade

Moody's Investors Service said it placed Black Knight, Inc.'s Ba2 corporate family rating and Ba2-PD probability of default rating, the Ba1 senior secured bank credit facility rating and the Ba3 senior unsecured rating on review for upgrade. The outlook was revised to rating under review from stable.

Black Knight and Intercontinental Exchange, Inc. announced that ICE agreed to buy Black Knight in a cash-and-stock transaction. The acquisition, subject to Black Knight shareholder approval and certain regulatory approvals, is expected to close in the first half of 2023.

The rating review reflects Moody's anticipation that, following the close of the acquisition by ICE, Black Knight's rated debt could remain an obligation of ICE with or without the explicit support of ICE, be exchanged for ICE debt, be repaid or be refinanced. If the rated Black Knight debt remains outstanding after the purchase closes, it would benefit from the positive credit impact of ICE as a potential source of debt service, whether or not ICE provides explicit support, such as a guarantee,” the agency said in a press release.

Moody's said it plans to finish the review once ICE's plan for the Black Knight debt is announced or effected. The agency said it anticipates withdrawing Black Knight's ratings if the debt is repaid.

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