Moody’s lifts USI

Moody's Investors Service said it upgraded USI, Inc.'s corporate family rating to B2 from B3 and its probability of default rating to B2-PD from B3-PD. Moody's also upgraded USI's senior secured credit facility ratings to B1 from B2 and its senior unsecured note rating to Caa1 from Caa2.

“The rating upgrade reflects USI's rising EBITDA and declining financial leverage along with Moody's expectation that the company will maintain a debt-to-EBITDA ratio below 7x. USI has largely completed its multiyear integration of Wells Fargo Insurance (WFIS), a 2017 carveout acquisition that involved upfront consideration followed by years of charges for retention arrangements, duplicate compensation and other items. These charges have tapered off to relatively small amounts that will end by 2023,” the agency said in a press release.

The outlook for USI is stable.

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