S&P ups TransUnion facilities

S&P said it upgraded TransUnion’s senior secured credit facilities to BBB- from BB+ and the recovery rating to 2 from 3 to reflect, among other things, the increasing growth and value of TransUnion’s global data and analytic solutions.

“The upgrade of the company’s senior secured debt reflects the business’ increasing intrinsic value and lender recovery prospects. Under our simulated default scenario analysis, which we use to assign our issue-level ratings, we have revised our emergence EBITDA multiple to align with premium information services and software and services companies,” S&P said in a press release.

“Our issue-level rating reflects our view that the increasing importance of data and analytics insights, increasing product diversity, and the company’s well-established customer relationships and embedded product solutions will support lender recovery prospects,” the agency said.

The agency also affirmed the BB+ issuer rating and changed the outlook to stable from negative. The outlook reflects the view TransUnion will sustain S&P adjusted leverage below 4x over the next 12 to 24 months as EBITDA margins hold firm in the mid-30% area while revenues remain resilient and improving despite challenging global economic headwinds, S&P said.

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