Moody's rates ManpowerGroup notes Baa1

Moody's Investors Service said it rated ManpowerGroup, Inc.'s proposed €500 million notes due 2026 at Baa1.

The proceeds from the new notes will be used to repay in full its €350 million 4.5% notes due June 22 and for general corporate purposes, including to fund acquisitions and shareholder returns.

The rating reflects the company's leading position in the global temporary staffing market and an anticipation that the debt-to-EBITDA ratio will be maintained at about 2x, Moody's said.

The agency said it expects 3% to 6% growth in revenue on a constant-currency basis in 2018.

ManpowerGroup has sustainable competitive barriers from its diverse list of large, multinational clients and roster of available workers in its most important national markets, Moody's said.

However, -services demand is cyclical and profit margins are very thin, the agency said.

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