Moody's upgrades Focus Financial

Moody's Investors Service said it upgraded Focus Financial Partners, LLC's corporate family rating to Ba3 from B1.

The company's $803 million senior secured term loan due 2024 and $650 million revolver due 2023 were affirmed at Ba3.

Moody's also said it upgraded the company's probability of default rating to Ba3-PD from B1-PD.

The outlook is stable.

This concludes a review for upgrade that began in June.

The upgrades follow the company's successful initial public offering and the use of net proceeds to retire the company's existing $207 million senior secured second-lien term loan and repay about $185 million of its senior secured first-lien term loan to $803 million.

The debt repayment results in a significant reduction in leverage to close to 5.2x from 6.2x, Moody's said.

The recent repricing of the company's term loan will also reduce cash interest expense to the company, the agency added.

The ratings also reflect the company's leading market position, solid cash flows, strong recurring revenues and proven acquisition model that provides the company with structural downside earnings protection, Moody's said.

The company's partnership model has fueled the company's growth, but it also has historically relied on debt as a significant source of funding, the agency noted.

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