Moody's: RiskMetrics outlook positive

Moody's Investors Service said it affirmed the Ba3 corporate family and probability-of-default ratings of RiskMetrics Group Holdings LLC and changed the outlook to positive from stable.

The agency also affirmed the $25 million first-lien revolver due 2013 and $300 million first-lien term loan due 2014 at Ba3 (LGD3, 33%).

"The positive outlook considers the company's track record of solid revenue and earnings growth since the acquisition of Institutional Shareholder Services, Inc. in early 2007 and the expectation of further profit growth in 2009 despite difficult conditions in the financial sector," Lenny Ajzenman, a Moody's vice president, said in a statement.

The Ba3 rating also reflects leading market positions in risk management and corporate governance end markets, very good liquidity and a stable, subscription-based business model, according to the agency.

Ratings are constrained by the limited size of its earnings base, concentration of its customer base in the financial sector and concern that a difficult environment for financial sector clients could lead to declining retention rates and slower new subscription sales, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.