Moody’s rates TriNet, facility Ba2

Moody's Investors Service said it assigned to TriNet USA, Inc. a corporate family rating of Ba2 and a probability of default rating of Ba2-PD.

Concurrently, the agency assigned a Ba2 rating to TriNet's new senior secured first-lien credit facility, comprised of a $425 million term loan and an undrawn $250 million revolver.

The proceeds of the new term loan will be used to repay existing debt issued by TriNet HR Corp.

The outlook is stable.

Moody’s said the corporate family rating is supported by TriNet's modest LTM debt leverage of 1.8x and good business visibility provided by a recurring sales model which contributed to net service revenue growth of 25% in 2017.

This top-line expansion, coupled with modest capital expenditures, has also supported the company's healthy free cash flow production which should exceed 40% of total debt over the next year, the agency said.

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