Moody's rates FactSet's notes

Moody's Investors Service said it rated FactSet Research Systems Inc.’s planned $1 billion of senior notes Baa3. FactSet also plans to secure a five-year $500 million revolver and a three-year $1 billion senior unsecured term loan.

“FactSet's relatively modest scale and limited end-market diversification are offset by an entrenched position in the financial information services industry, a resilient revenue base and strong profitability rates. The expectation for sustained conservative financial policies, including debt repayments following the acquisition of Cusip Global Services, is a key assumption supporting its investment-grade rating," said Ignacio Rasero, a Moody's senior credit officer, in a press release.

FactSet plans to use the proceeds, a $250 million draw on the revolver and $275 million of cash on hand to finance the acquisition of Cusip Global Services from S&P Global Inc., to repay debt and to fund transaction fees and expenses.

The outlook is stable.

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